In ancient times, heavenly alignments foretold doom. What would the ancients have had to say about the recent extraordinary planet parade when Mercury, Venus, Earth, Mars, Jupiter, Saturn, Uranus, Neptune - plus the dwarf planet Pluto – all lined up together? And, at the same time, that most basic and primal of metals, gold, was also shooting up to the stars.
The U.S. Comex gold futures surged 2.73 percent in the past two days to $1,279.90 on Thursday while the dollar index suffered a loss of 2.17 percent. The CRB Commodities index, the S&P 500 index, and the Euro Stoxx 50 index have rebounded 1.01 percent, 1.37 percent and 0.64 percent respectively on Wednesday and Thursday. The U.S. 10-year government bond yield rallied about 6bp in the same period.
After dropping 23 percent in Q2, the U.S. Comex gold futures have rebounded 1.81 percent so far in July. The Dollar Index is marching towards the 85 handle, after falling 0.29 percent last month. The S&P 500 index suffered its first monthly loss since October 2012 in June, but has rebounded 2.87 percent in July.
After plunging 6.89 percent last week, the gold futures have dropped 1.31 percent in the past two days to finish at $1,275.10 on Tuesday. The prices fell to as low as $1,242.60 during Wednesday Asian morning. The Dollar Index continued to strengthen, rising 0.32 percent this week to 82.581 after surging 2 percent last week. The S&P 500 index and the Euro Stoxx 50 index retreated 0.28 percent and 0.24 percent respectively in the past two days. Both indices traded up over 1 percent on Tuesday.
After the June 18-19 FOMC meeting, the U.S. Fed has injected more fear than calm into the gold market. The U.S. Comex gold futures inched up 0.52 percent on Wednesday after the Fed has released its FOMC statement. On Thursday, the gold futures plunged as much as 7.18 percent to $1,275.40 before finishing the day at $1,286.20, the lowest level since September 2010.
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