Dow shot up 530, advancers over decliners 6-1 & NAZ went up 269. The MLP index was up 1+ to the 216s & the REIT index jumped 5+ to the 371s. Junk bond funds were in demand & Treasuries were sold heavily, bringing higher yields. Oil rebounded 2+ to the 71s & gold tumbled 32 to 2022( more on both).
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
While market volatility & a weakened $ have made investors even riskier this year, the value of gold has risen to near record levels & may keep shining. "In
2023, traders want the long-term returns of gold," Joe Cavatoni, a
market strategist at the World Gold Council, said following
last year's boom in oil. "Gold
moves quickly on catalysts like the regional banking crisis, increased
interest rates, geopolitical tensions and the debt ceiling," he added. "Gold is liquid, and these factors will take the precious metal even
higher." The price of gold has gained around 12.4% YTD, approaching the record $2051 reached in Aug 2020. The latest data compiled by the World Gold Council showed total
demand rose 1% year-over-year to 1174 in the first qtr of 2023.
During the same period, bar & coin demand went up 5%. Meanwhile, global jewelry consumption was relatively flat, peaking at 478. The council predicts bar & coin demand will continue this year,
particularly as US, Southeast Asian & Middle Eastern demand
outweighs the slowdown in Europe. Gold supply is also predicted to rise
from mine production & recycling. Cavatoni said the diversification benefits are one of gold’s greatest assets. "It
will do exactly what you expect under bad market conditions, and it
correlates well in better markets," he continued. "Even gold’s demand
from central banks around the world is increasing. It’s a
diversification moment, and they are choosing gold." "It’s simple, gold is a real asset. My house, my land, my gold," Cavatoni finished. According to the report, the central banks added 228 tons to global reserves over the first qtr to post a milestone high for the period. A recent Kitco News online survey showed investors could see gold top out at a record $2100 an ounce in 2023.
Gold boom continues in 2023 nearing fresh record
Pres Biden warned that the low unemployment rate in Fri's jobs report could disappear if House Reps do not increase the debt ceiling soon. “Just today they’re reporting 250,000 new jobs,” Biden said. “The last thing this country needs after all we’ve been through is a manufactured crisis and that’s what this is: A manufactured crisis. That’s what it is from beginning to end, it’s a manufactured crisis driven by MAGA Republicans in the Congress.” The Bureau of Labor Statistics’ jobs report found nonfarm payrolls increased 253K for the month, far beating the estimate of 180K. The growth puts the unemployment rate at 3.4%, compared to an estimate of 3.6%, tying it for the lowest level since 1969. Biden praised the figures but warned if Reps did not agree to lift the debt ceiling & prevent a default, the impact on the economy could be catastrophic. The pres cited a recent Moody;s report which showed 780K people could lose their jobs if the country were to default on its debt. Lifting the debt ceiling is necessary for the gov to cover existing spending commitments already approved by Congress & the pres. Doing so does not authorize new spending, but House Reps have said they will not authorize a lift if future spending cuts are not agreed to. The White House has said it is open to discuss spending cuts but will not negotiate with Reps on the debt ceiling, & lifting it is their constitutional responsibility. “They’re two separate issues – two,” Biden said. “Let’s get it straight: They’re trying to hold the debt hostage for us to agree to some draconian cuts, magnificently difficult and damaging cuts. But unfortunately, they’re threatening to undo all this progress by letting us default.” Congress lifted the debt ceiling 3 times under the Trump administration without conditions. Biden warned of the impact it could have on the country's standing in the world, saying America is “not a deadbeat nation” & that the standoff “is becoming an issue in other countries” who worry the US will default.
Biden warns: Say goodbye to job growth if debt ceiling isn’t lifted
The spread of Covid-19 is no longer a global public health emergency, the World Health Organization (WHO) declared. “For more than a year, the pandemic has been on a downward trend with population immunity increasing from vaccination and infection, mortality decreasing, and the pressure on health systems easing,” WHO Director-General Tedros Adhanom Ghebreyesus said. “This trend has allowed most countries to return to life as we knew it before Covid-19,” Tedros added. “It’s therefore with great hope that I declared Covid-19 over as a global health emergency.” Nearly 7M people have died from the virus worldwide since the WHO first declared the emergency on Jan 30, 2020, according to the UN organization's official data. Tedros said the true death toll is at least 20M. The WHO's decision comes as the US is set to end its national public health emergency on Thurs. Tedros said there is still a risk that new variant could emerge & cause another surge in cases. He warned national govs against dismantling the systems they have built to fight the virus. “This virus is here to stay. It’s still killing and it’s still changing,” he said. But the WHO chief said the time has come for countries to transition from an emergency response to managing Covid like other infectious diseases.
WHO declares end to Covid-19 global public health emergency
Gold prices settled lower, a day after marking their highest settlement level since Aug 2020, as a strong Apr Us jobs report fueled fresh doubt that the Federal Reserve will pause further interest-rate hikes. Gold for Jun fell by $30 (1.5%) to settle at $2024 per ounce. Prices for the most-active contract, which settled yesterday at the highest since Aug 2020, ended 1.3% higher for the week. Gold prices were dragged lower toward the psychologically important $2000 mark by the higher-than-expected headline nonfarm payroll report, coupled with the unemployment rate matching a multi decade low. This latest evidence of a still-tight labor market is casting fresh doubt on a Fed hike pause, to the chagrin of the zero-yielding precious metal. Gold's recent rally had been paved by expectations that US rates have peaked, much to the relief of the zero-yielding asset, with the safe-haven asset having been bid up by persistent fears over US banking turmoil, which raises the prospects of a recession.
Gold settles lower as U.S. jobs report casts fresh doubt on pause in Fed rate hikes
US oil futures settled higher, but still lost over 7% for the week. It remains to be seen whether the rise in oil prices was just short-covering, or actual buying in the hope that prices have bottomed. Without some confirmation, this would certainly boost the WTI outlook, especially in light of the OPEC's big supply cuts & falling US oil inventories. Jun West Texas Intermediate crude rose $2.78 (4.1%) to settle at $71.34 a barrel, with prices for the front-month contract down 7.1% for the week.U.S. Oil Futures Gain for The Session, Lose Over 7% for The Week
This was a wild week for stocks, but today's rally limited the damage to a decline of 440. However, gold remains in strong demand by negative thinking investors. After all there is a lot to think about: getting inflation under control, a possible recession & resolving the debt ceiling among other issues.
Dow Jones Industrials
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