Gold Approaches $3,500/oz

With no new developments related to the trade war or the Fed overnight, Gold continues to rally, gaining 1.2% this morning and trading above $3,460/oz. Silver, meanwhile, is up 0.5% and Bitcoin is up 1.5%. Commodities are also rebounding with Copper up 1.5% and Crude Oil up 1.3%. With the US 10-year treasury note yield advancing toward 4.40%, the US Dollar has started to rebound gaining 0.3% against the Euro, Yen and Aussie, while holding steady relative to the Loonie.

Earnings season resumes this morning with better than expected results from manufacturers 3M* and Danaher, which are up 6.7% and 4.2% respectively premarket. The reaction to results from defense contractors has been more varied with Lockheed Martin up 3.2% premarket, but RTX and Northrop Grumman down 4.2% and 9.1% respectively. Tesla reports after the close this afternoon.

The somewhat positive response to earnings has helped US index futures to bounce back a bit today with gains of 0.7% to 0.8%, partly offsetting yesterday’s US index losses of 2.3%-2.5%. European action is mixed with the Dax down 0.6% and the FTSE up 0.1%.

*Shares of 3M are held in portfolios managed by SIA Wealth Management.

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