Gold Keeps Shining on Ever-Expanding ETF and Chinese Buying Activity

Gold sets another record high and is a hair's breadth away from $3,000

Highlights

• Gold sets another record high and is a hair's breadth away from $3,000

• Bond markets nervously await Powell's testimony at Congress

• Trump tariffs on metal imports bring the loonie’s rally to a halt

• Extreme equity market sentiment keeps us cautious

Key Takeaways

Rallying Markets, Narrow Breadth

• The major averages rallied nicely yesterday but beneath the surface, small caps faded, and breadth was rather narrow — advancers topped decliners by 3-to-2 on the NYSE and by just 6-to-5 on the Nasdaq, despite the +1.0% daily pop.

Global Markets Mixed Ahead of U.S. Open

• Today is a bit of a different matter. U.S. equity futures are pointing to a softer open, European markets are flat, and Asia was down for the most part — India (-1.5%), Hong Kong (1.4%), Singapore (-0.3%), and China’s Shanghai Composite (-0.1%). The only gainers were Thailand (+1.1%), Korea (+0.7%), and Taiwan (+0.6%). All in, Asia-Pacific slipped by -0.4% today and Emerging Markets are on pace for the same.