(Kitco News) – Rising geopolitical tensions between the U.S. and China are giving gold a boost late Wednesday morning as prices have pushed well off their session lows.
December gold futures last traded at $1,947 an ounce, up more than 1% on the day. The rally comes as the U.S. dollar also loses momentum, falling to a session low around 93 points.
?????? Chinese military launches two missiles in South China Sea in ‘warning to the United States’
Weapons splash down in disputed waters a day after American spy plane reportedly nears Chinese naval drillhttps://t.co/m3RrM2KQJn
— PiQ (@PriapusIQ) August 26, 2020
According to media reports, the Chinese military launched two missiles, including an “aircraft-carrier killer,” into the South China Sea on Wednesday morning. According to sources close to the Chinese military, the missile launched was a clear warning to the United States.
The reports said that the Chinese government is retaliating a day after they said that a U.S. U-2 spy plane entered a no-fly zone off the country ’s north coast.
Phillip Streible, market strategist at Blue Line Futures, said that investors are laser focused on what Federal Reserve Chair Jerome Powell will say on Thursday but the latest geopolitical development shows that gold is playing a much bigger safe-haven role.
“Nobody is taking about this yet but gold is definitely getting a boost from renewed geopolitical uncertainty,” he said.
Gold investors have been waiting anxiously for more than a week to hear what Powell has to say about the state the economy and the potential for new stimulus measure. The gold market is still trying to recover after last week’s sharp 3.5% selloff, which came after disappointing minutes from the U.S. central bank July monetary policy meeting.
According to the minutes, some committee members pushed back on the idea that the Federal Reserve was looking to introduce a yield curve control program. The members said that they don’t see any benefit to capping bond yields.
Wall Street opens lower as jobless claims rise – Reuters
Sept 24 (Reuters) – Wall Street opened lower on Thursday as a surprise increase in weekly jobless claims signaled that a labor market recovery was cooling and that more fiscal support would be necessary to avoid another round of mass layoffs and furloughs.
The Dow Jones Industrial Average fell 47.04 points, or 0.18%, at the open to 26,716.09. The S&P 500 opened lower by 10.78 points, or 0.33%, at 3,226.14, while the Nasdaq Composite dropped 81.97 points, or 0.77%, to 10,551.02 at the opening bell. (Reporting by Devik Jain in Bengaluru; Editing by Maju Samuel)
US STOCKS-Tech stocks lift Wall Street as economic rebound slows – Reuters
(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.)
* Weekly jobless claims unexpectedly rise to 870,000
* Nikola slides after Wedbush downgrade
* Accenture drops, BlackBerry rises on quarterly earnings
* Indexes up: Dow 0.39%, S&P 0.54%, Nasdaq 0.81% (Updates to early afternoon)
Sept 24 (Reuters) – Wall Street climbed in choppy trading on Thursday, with investors returning to the perceived safety of technology-related stocks as a surprise rise in weekly jobless claims signaled a slowdown in economic growth.
Nine of the 11 major S&P indexes were trading higher, with information technology leading gains.
Apple Inc, Amazon.com Inc, Netflix Inc , Nvidia Corp and Facebook Inc, which have outperformed at a time of increased economic uncertainty, rose between 0.5% and 2.7%.
“Investors are going to be needing stocks that can weather a lower growth path because if we don’t get another round of fiscal stimulus, there’s not going to be a lot more we can do to continue boosting the economic recovery,” said Max Gokhman, capital markets strategist at Pacific Life Fund Advisors.
Waning hopes of more fiscal stimulus, signs of a faltering business recovery and a sell-off in technology-related names have weighed on U.S. stocks this month.
The S&P 500 briefly fell 10% below its intraday record high hit on Sept. 2. If the benchmark index closes at that level, it will enter correction territory.
Dow constituents, considered a barometer of economic confidence, lagged the S&P 500 on Thursday as data showed 870,000 Americans applied for jobless benefits in the week ended Sept. 19, up from 866,000 in the previous week.
Job cuts have spread to industries such as financial services and technology that were not initially impacted by the mandated business closures in mid-March because of insufficient demand.
At 12:32 p.m. ET, the Dow Jones Industrial Average was up 0.39%, the S&P 500 was up 0.54% and the Nasdaq Composite was up 0.81%.
The CBOE volatility index, which is hovering near two-week highs, is expected to climb in the run up to the quarter end next week.
“The key is the VIX index, which has not yet reached levels that would suggest a continued strong move to the downside,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
“So you might get a day of bargain hunting followed by a day of selling, but as the last days of September come into place, we should begin to see some sort of window dressing by institutions.”
Homebuilders climbed 0.8% as sales of new single-family homes increased to their highest level in nearly 14 years last month.
Nikola Corp, which is set for its biggest weekly decline ever, shed another 4.3% as Wedbush downgraded the stock to “underperform”.
Accenture Plc fell 6.4% after the IT consulting firm forecast current-quarter revenue below expectations, while, U.S.-listed shares of Canadian security software firm BlackBerry Ltd jumped 5% after it posted a surprise rise in quarterly revenue.
Declining issues nearly matched advancers on the NYSE and the Nasdaq.
The S&P index recorded no new 52-week highs and two new lows, while the Nasdaq recorded seven new highs and 116 new lows. (Reporting by Sagarika Jaisinghani and Devik Jain in Bengaluru; Editing by Arun Koyyur)
Etobicoke pub temporarily closes after employee tests positive – CityNews Toronto
An employee at Firkin on the Bay has tested positive for COVID-19.
The pub is located at 68 Marine Parade Drive near the Lake Shore in Etobicoke.
The pub has temporarily shut it’s doors and in a letter to customers say they are taking necessary steps to ensure that they can reopen when it’s “absolutely safe to do so.”
The employee last worked at the location on September 20 from 10:30 a.m. until 6:00 p.m.
Management at the pub say they contacted Toronto Public Health and shared contract tracing details. As per public health officials guidance all employees at the location have gone into self-isolation and will undergo testing before being able to return to work.
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