Who Was Buying Gold Today?
Equities were lower for a
second day while Treasury yields hit 45
year highs after an anemic April retail sales data release.
Equities
The equity markets were lower today after a weak
retail sales data–which was lower due in large part to lower gasoline prices.
And AMD’s flattish outlook made the tech sector step back for today. The Nasdaq index futures contract
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The S&P 500 contract
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and the Dow
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finish at 8635.
Fixed Income
Treasuries made impressive gains today ahead of
tomorrow’s PPI data, as the market has removed all inflation risk amid Fed
rhetoric on the matter. The back end led the way, further flattening the yield.
The 10 year futures contract
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was up 1-09 at 118-12; and the five year note was up 110 at 115-115
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Metals
Gold was stronger today amid dollar strength
against the euro. Some of the market makers reported heavy hedge fund buying
during London and early New York trading hours. As a result, the yellow metal
was up by 2.30 to close at 352.5
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suit, climbing 4.70 to closed at 4.872. Base metals were mixed after
copper took a breather today on the back of a weaker retail sales number. The
metal was down by .35 to close at 76.10
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was up .0020 to .6535.
Energy
Crude oil prices finished higher after news that
ConocoPhillips had to shut down its refinery operations in Louisiana (due to a
power outage) triggered a short squeeze in the commodity. June crude was up .67
to close at 29.17
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slightly higher by .006 to close at 6.314
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Currencies
The dollar was stronger today against the euro
for a second day after the German Finance Minister suggested that German
economic growth may have contracted in the first quarter. The British pound was
generally higher after its government signaled that it would hold off joining
the euro for now The USD index
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finished at 94.73.