Gold $5,000 and Silver $100 in Sight

World markets and sectors have experienced their ups and downs over the past several months, but one theme has remained consistent. While the names dominating headlines shift from day to day, ongoing political tensions around the world continue to underpin a steady drive higher in precious metals, as capital appears to seek out traditional havens.

This morning brings two particularly striking levels into view. Gold is up 0.4%, trading within $70.00 of the $5,000/oz level, while Silver is up 2.6%, trading just over $1.00 away from the $100.00/oz level. Meanwhile, Platinum is up 5.5%, trading above $2,700/oz, and Palladium has crossed the $2,000/oz barrier, trading up 4.2% this morning.

At the same time, capital continues to flow out of risk assets, particularly cryptocurrencies. Bitcoin is back under $90,000, trading down 0.5% today.

US index futures are lower by 0.1% to 0.2% as traders digest two days of gains alongside another round of earnings reports. European trading has also been sluggish, with the FTSE and DAX essentially flat.

Crude Oil is rebounding with a 1.8% gain, lifting prices back above $60.00/bbl as Iran moves back into the spotlight. Natural Gas has paused near $5.00/mmbtu ahead of this weekend’s deep freeze and a major storm.

Intel* beat the street on EPS ($0.15 vs street $0.08), but disappointed on EPS guidance ($0.00 vs street $0.05) and is currently down 13.4% premarket, which appears to be cooling interest in technology stocks. Alcoa ($1.26 vs street $0.93) also beat the street. Capital One Financial is down 3.8% premarket after the credit card company disappointed on earnings ($3.86 vs street $4.14).

Today’s flash PMI reports have been positive overall, with Australia, Japan, Germany, and the UK improving from last month and exceeding expectations. US Flash Manufacturing PMI (street 52.1) and Flash Services PMI (street 52.8) are due at 9:45 am EST.

Retail sales reports released today have also been positive, with Canada (1.3% vs street 1.2% and previous -0.2%) and the UK (2.5% vs street 1.0%) both beating expectations.

*Shares of Intel are held in some portfolios managed by SIA Wealth Management.

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