Precise Investors Editorial Team
Spot gold shed 5.31% to $4,123.85 an ounce, and had its steepest daily percentage drop since August 2020
Major stock indexes were mostly near flat on Tuesday, with upbeat results and forecasts from top U.S. companies providing some support, while gold prices dropped more than 5% as investors took profits after a recent rally.
The yen dropped to a one-week low after conservative Sanae Takaichi was elected as Japan’s prime minister. Japan’s Nikkei share gauge closed at a record high on Tuesday.
Spot gold shed 5.31% to $4,123.85 an ounce, and had its steepest daily percentage drop since August 2020. Prices scaled an all-time high of $4,381.21 on Monday and have gained nearly 60% this year.
U.S. President Donald Trump said he expected to reach a fair trade deal with Chinese President Xi Jinping when the two meet next week in South Korea, and played down the risks of a clash over the issue of Taiwan.
The prospect of a resolution also helped bolster investor sentiment, along with a deal between Australia and the US for the supply of rare earths minerals.
In earnings, GM shares climbed after the company raised its full-year forecast, and Coca-Cola gained after the company posted results that beat analysts’ estimates.
But the S&P 500 technology sector was down 0.2%, and Michael Green, chief strategist at Simplify Asset Management in Philadelphia, said the reaction to some earnings surprises was modest.
The earnings are better than expected as companies continue to gain slightly in terms of margins, which suggests that (companies) have to be passing through the tariffs or pushing the tariffs back onto the importers, Green said.
The Dow Jones Industrial Average rose 218.16 points, or 0.47%, to 46,924.74, the S&P 500 rose 0.22 points, essentially flat, to 6,735.35 and the Nasdaq Composite fell 36.88 points, or 0.16%, to 22,953.67.
MSCI’s gauge of stocks across the globe dropped 0.84 points, or 0.08%, to 994.85.
The pan-European STOXX 600 index added 0.21%.
Against the Japanese yen, the dollar firmed 0.81% to 151.96.
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