Next Investors logo grey

US stocks higher as gold and silver prices rise

Published 23-JUL-2020 09:24 A.M.


2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

US stocks traded in the black overnight after a somewhat choppy session, despite over 1000 COVID-19 deaths recorded for the day and mixed earnings results.

As Washington discusses additional stimulus measures, investors remain upbeat about the prospect of high-risk assets despite the ongoing economic challenges and severe outbreak of the pandemic in the US and other parts of the world.

The latest figures showed more than 1,000 deaths in the United States from COVID-19 on Tuesday, bringing the total death toll to nearly 142,000. Experts warned that number will rise further due to a surge in new infections.

Gold prices staged another rally overnight adding about 1.4% to close at U$1,869.3 per ounce. The precious metal is now not far below 2011's record high of U$1,920.70.

Gold’s little brother silver is also in favour as prices soared over 8% on Wednesday.

In Australia, investors took profit on Wednesday after a 2%+ jump on Tuesday leaving the ASX in the red. The benchmark index ASX 200 dipped 81.2 points or 1.32% to close at 6,075.1 points. The All Ordinaries fell 76.2 points or 1.22% to 6,192.6 points.

ASX futures contracts have settled 4 points higher after a volatile night.

Europe and Asia lower, metals trade higher

In New York, major stock indices oscillated for most of the day but ended higher. This was despite the Nasdaq posting just a small gain, highlighted by a drop in Amazon shares.

The S&P 500 added 0.57% to finish at 3,276.02 points, while the Dow Jones Industrial Average rose 0.62% to 27,005.84. The Nasdaq Composite added 25.76 points, or 0.24%, to finish at 10,706.13.

According to Refinitiv data, 75 companies of the S&P 500 have posted quarterly earnings results so far, of which 77.3% have beaten consensus. The average consensus, however, forecast a drop of 40% or more.

Earlier in the session, Asia Pacific traded mostly lower with the exception of the Shanghai Composite which bucked the trend to finish marginally higher.

Australian stocks declined and so did markets in Japan and Hong Kong. The Hang Seng fell a hefty 2.25% and the Nikkei declined 0.58%. The Shanghai Composite managed to rise 0.37%, but gave up most gains in afternoon trade.

European markets fared similar as key indices drifted lower, dragging the STOXX Europe 600 index south. The pan-continental benchmark index ended the day 0.87% lower.

UK shares led the decline as the FTSE continued its underperformance of global equities. The FTSE 100 dipped 1% to 6,207.1 points. The German Dax performed only slightly better, down 0.51%.

It was once again, precious metals that stole the action as silver spot prices jumped a staggering 8% to approximately US$23.05 an ounce. Gold prices joined the rally pushing swiftly towards all-time highs, while most other metals including platinum or palladium rose as well.

Crude oil prices traded largely unchanged as the commodity consolidated overnight. While the oil and gas industry certainly does not have a bright future – as emerging and more efficient energy resources are being developed – investors value a barrel of crude oil at approximately U$41.85.

Overall the ASX looks poised for a mixed day with futures up a mere 4 points while commodity prices fared relatively well overnight.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.