Gold Nears $600
The first trading day of Q2
saw the release of the ISM Manufacturing Index,
Pending Home Sales and Construction Spending data.
The ISM
manufacturing index fell to 55.2 in March from 56.7 in February
(report).
Meanwhile, the Commerce Department report on Construction Spending showed growth
above expectations (report).
Treasuries resumed their slide after Friday’s pause, pushing yields higher. The
10yr T-note yield hit 4.898%, its highest level since May 2004, before closing
at 4.874%. The 5yr T-note yield hit the highest level in four years.
The US Dollar declined against the Euro, Yen and GBP, weighed down by the ISM
report.
The energies were mixed, Crude Oil, Heating Oil and Natural Gas managed to close
higher but surrendered most of their gains, while Unleaded Gas closed slightly
lower.
In the softs, Sugar +2.40%, which hit a new contract high, and Coffee +2.29%
were the best performers, Lumber was the worst performer, losing 1.48%.
All the grains closed lower, except for Corn which managed to close fractionally
higher.
Gold continued its march towards $600 an ounce, a level not seen since 1981,
closing at $594.30.
Construction Spending up 0.8% (report)
Pending Home Sales down 0.8% for Feb.
ISM Manufacturing Index at 55.2 for March (report)
Ashton Dorkins
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