Defensive Sentiment Pushes Gold Through the $5,000 Barrier

Over the weekend, President Trump threatened Canada with a 100% tariff should it move ahead with a trade deal with China. While this has had no impact on the Loonie or equities as of yet, it has served as a reminder to investors that while the flashpoint of the day may change, underlying conflicts around trade and politics remain unresolved.


Capital continues to flow into defensive havens to start the week. Gold has pushed through $5,000/oz and rallied toward $5,100 with a 2.0% gain. Silver has surged through $100.00/oz toward $110.00, posting a 7.8% gain today. Platinum is up 4.0%, while the Japanese Yen is higher by 1.0%.


With the Yen rallying, the Nikkei fell 1.8% overnight. Other major markets across Asia and Europe, along with US index futures, have been relatively quiet to start the week. In commodity markets, Natural Gas is up 11.9% as a major storm moves through, while Crude Oil is down 0.2%. Copper is higher by 0.40%.


The Bank of Canada and the Federal Reserve Board both meet on Wednesday. No changes to interest rates are expected this month, though investors may focus on statements and press conferences for commentary on economic conditions and the future path of policy. Markets also continue to wait for clarity on who will be named the next Fed Chair. It is otherwise a relatively quiet week for economic data.


Earnings season moves into the heart of big-cap reporting this week, including three of the “Magnificent 7” companies. US highlights include Boeing on Tuesday; Meta Platforms, Microsoft, IBM, and Tesla* on Wednesday; Caterpillar* and Apple on Thursday; and ExxonMobil and Chevron to close out the week on Friday. Results also begin to roll out in Canada, with Canadian Pacific and Celestica reporting on Wednesday; Rogers on Thursday; and Canadian National Railway on Friday.

*Shares of Tesla and Caterpillar are held in some portfolios managed by SIA Wealth Management.

Share:

Read More:

Terms and Conditions:


This information is for Investment Advisors only. The website is for informational purposes only and is not intended to provide a complete description of SIA Wealth Management’s products or services. Past performance is not indicative of future results. It should not be construed as investment advice or relied upon in making an investment decision. Products and services of SIA Wealth Management are only offered in jurisdictions where they may be lawfully offered for sale. The information contained in this Website does not constitute an offer or solicitation by anyone to buy or sell any investment fund or other product, service or information to anyone in any jurisdiction in which an offer or solicitation is not authorized or cannot be legally made or to any person to whom it is unlawful to make an offer of solicitation. All products and services are subject to the terms of each and every applicable agreement. It is important to note that not all products, services and information are available in all jurisdictions outside Canada.

SIA Wealth Management Inc. (SIAWM) specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, Advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIA Wealth Management Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.