Housekeeping: Good Morning.
Remember the Toilet paper panic during Covid?
Now imagine that for Gold…
Today:
Commentary: No FOMO Like Precious Metals FOMO
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Equity Recap:
US equities rallied on Monday for an eighth consecutive trading session. Large caps lagged small caps: S&P 500 (+0.97%) vs. Russell 2000 (+1.19%). MSCI Emerging Markets (EEM) and MSCI EAFE (EFA) added 0.97% and 1.22% respectively.
Premium Markets:
No FOMO Like Precious Metals FOMO
As the price of gold goes up.. physical people want more of it due to the increasing utility of it. (shrinking space needed to store wealth)
A million dollars now can be stored in a space smaller than 1mm cash and weighs comparably the same.
The Commodities Feed: Ceasefire hopes
ING Bank Notes Oil prices have come under renewed pressure following progress towards a ceasefire between Israel and Hamas. However, while Israel has accepted a ceasefire, the market is still waiting to see whether Hamas is onboard.
Full analysis in premium at bottom…
Market News:
"For the first time ever, a bar of gold is worth one million dollars. Bloomberg
"Vice President Kamala Harris is calling for raising the corporate tax rate to 28% CNBC
"GM is laying off more than 1,000 salaried employees globally in its software and services division following a review to streamline the unit's operations. CNBC
"Carl Icahn and his company agreed to pay $2 million to settle civil charges from the Securities and Exchange Commission Source: WSJ
Politics/Geopolitics:
US President Biden says Hamas is 'backing down' from Gaza deal, according to AFP cited by Sky News Arabia.
"[Israel-Hamas ceasefire] Negotiations scheduled in Cairo are expected to be postponed until the end of the week due to lack of progress in contacts"
Israeli PM Netanyahu accepted the updated proposal that includes some of his new demands because he knew that Hamas would reject it
Some headlines via NewSquawk or DataTrek
Data on Deck: Jackson Hole
MONDAY, Aug. 19 9:15 am Fed Governor Christopher Waller welcoming remarks 10:00 am U.S. leading economic indicators July -0.4% 0.2% TUESDAY, Aug. 20 1:35 pm Atlanta Fed President Raphael Bostic speech 2:45 pm Fed Vice Chair for Supervision Michael Barr speech
WEDNESDAY, Aug. 21 2:00 pm Minutes of Fed's July FOMC meeting
THURSDAY, Aug. 22 S&P flash U.S. services PMI Aug. 10:00 am Existing home sales July 3.95 million 3.89 million
FRIDAY, Aug. 23 10:00 am Fed Chair Jerome Powell speech at Jackson Hole retreat 10:00 am 1
Final Market Check…
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