Marketwatch North America

Daily Insights
May 20, 2024

Gold ended last Friday at $2,414.89/oz., setting both a daily and weekly record close. The advance triggered more inflows into gold today, at least partly due to automated algo systems trading on momentum signals. Increased political uncertainty in the Middle East following the death of Iran’s president and foreign minister in a helicopter accident over the weekend, and rising optimism for a Fed rate cut this year are also underpinning gold prices which reached an intraday high of $2,449.89 today before encountering resistance at $2,450.00 (market technicians flock to round numbers).

Gold is +17.25% YTD, impressive except when compared to silver’s 32.79% YTD gain. Copper is +29.94% and tin leads all gains +34.77%.

The dollar’s daily spot returns are an even mix of gains and losses against the G10 currencies. A gain of 0.29% vs. the JPY and 0.38% drop against the SEK bookend the dollar’s performance. The dollar index is higher by an uninspiring +0.09% in narrow overnight ranges.

U.S. Treasury yields are higher by small margins in all tenors as traders monitor remarks from Fed officials today. Fed Presidents Bostic, Barr, Waller, Jefferson and Mester have scheduled events. Fed Funds Futures imply two 25bps cuts by the end of the year.

This week’s U.S. economic calendar includes Mortgage Applications and Existing Home Sales on Wednesday, Weekly Jobless Claims (this will be interesting given last week’s six-month high) and New Home Sales on Thursday, and Durable Goods Orders and Consumer Sentiment on Friday.

Economic Calendar

USD - FOMC Member Bostic Speaks
CAD - Bank Holiday
CNY - 1-y Loan Prime Rate
CNY - 5-y Loan Prime Rate
USD - FOMC Member Waller Speaks
JPY - Tertiary Industry Activity m/m
USD - FOMC Member Barr Speaks
CHF - Bank Holiday
USD - FOMC Member Jefferson Speaks
EUR - French Bank Holiday
USD - FOMC Member Mester Speaks
EUR - German Bank Holiday
GBP - MPC Member Broadbent Speaks

Market Indicators

Currency Pairs
Pair High Low
usd/jpy 156.23 155.316
eur/usd 1.08844 1.0854
gbp/usd 1.27109 1.2683
aud/usd 0.67092 0.66619
usd/cad 1.36351 1.35998
eur/gbp 0.85677 0.85476
usd/mxn 16.6404 16.5729
Equities and Commodities
S&P 500 5325.52
NASDAQ 18674.4
DOW 40037.7
GOLD 2416.53
SILVER 31.41

This document is for information purposes only and does not constitute any recommendation or solicitation to any person to enter into any transaction or adopt any trading strategy, nor does it constitute any prediction of likely future movements in exchange rates or prices or any representation that any such future movements will not exceed those shown on any illustration. All exchange rates and figures appearing are for illustrative purposes only. You are advised to make your own independent judgment with respect to any matter contained herein.