Gold Prices Mixed As Dollar Firms

Gold prices traded mixed on Thursday, as the dollar rose against major currencies for the first time this week and U.S. yields held steady ahead of key U.S. labor market and inflation readings.

Spot gold was marginally higher at $1,897.13 per ounce, after hitting its highest since Jan.8 at $1,912.50 on Wednesday. U.S. gold futures were down 0.2 percent at $1,897.30 per ounce.

The dollar found support amid signs the Federal Reserve is slowly but surely edging towards a discussion about tightening monetary policy.

Federal Reserve Vice Chairman for Supervision Randal Quarles said Wednesday that he was prepared to open talks on reducing the emergency support measures if the economy continues to power out of the health crisis.

Fed officials have recently downplayed rising price pressures, but a subtle shift in tone suggested that the time to talk about policy changes might be approaching.

Elsewhere, Bank of Korea Governor Lee Ju-yeol said the bank is preparing for an “orderly exit” from its record-low interest rate at some point in the face of accelerating inflation and a build-up of dangerous imbalances.

On Wednesday, the Reserve Bank of New Zealand (RBNZ) surprised many by projecting that it might hike interest rates as early as September next year.

De La Rue FY Profit Down

De La Rue plc (DLAR.L) reported that its profit attributable to owners of the parent for the year ended 27 March 2021 declined to 5.9 million pounds or 3.4 pence per share from 34.1 million pounds or 29.9 pence per share in the previous year.

Profit before taxation from continuing operations was 9.9 million pounds down from 36.1 million pounds in the prior year.

Group IFRS revenue reduced by 15.8% to 397.4 million pounds from last year, due to substantially lower “pass-through” revenue on non-novated contracts for Paper and International Identity Solutions of 9.3 million pounds as the contracts covered by the arrangements are now largely completed.

The company expects a strong pipeline of business for fiscal year 2021/22 and continues to expect to deliver the full financial and operational benefits of the Turnaround Plan during the year.

Trading for the first two months of fiscal year 2021/22 has been positive and in line with management expectations.

The company continues to aim for the Group to be generating cash flow capable of supporting sustainable cash dividends to shareholders by the end of the Turnaround Plan in fiscal year 2022/23.

China vice premier holds talks with U.S. trade chief

BEIJING (Reuters) – China and the United States agreed that the development of bilateral trade is very important, China’s commerce ministry said, adding that both sides exchanged views on issues of mutual concern.

The ministry said in a statement on its website that Vice Premier Liu He spoke with U.S. Trade Representative Katherine Tai on Thursday, and described the talks as candid, pragmatic and constructive.

Christine Wormuth Becomes First Female Army Secretary

Christine Wormuth made history Thursday morning when the Senate confirmed her as the nation’s first female Army secretary.

Wormuth was approved by unanimous consent in the Senate for her new role, which is the Army’s top civilian post. Though she was meant to be confirmed Wednesday night, a “procedural hiccup” paused her confirmation, according to Roll Call reporter Andrew Clevenger. She was confirmed the following morning.

In her new role, Wormuth will oversee the Army’s policies, programs and budgets to be presented to the secretary of defense.

Wormuth previously led Biden’s transition team at the Defense Department, and had bipartisan support among Republicans and Democrats to take over her new post, according to Politico.

“Serving in this role is a tremendous privilege and responsibility!” she wrote on Twitter.

Wormuth was also previously the director of the International Security and Defense Policy Center at Rand, a federally funded think tank.

HGTV ‘Flipping 101’ host on housing: We’re in ‘craziest market I’ve ever seen’

HGTV ‘Flipping 101’ host: We’re in ‘craziest market I’ve ever seen’

HGTV ‘Flipping 101’ host Tarek El Moussa on flipping homes in the current market.

HGTV "Flipping 101" host Tarek El Moussa told FOX Business' Stuart Varney on  "Varney & Co." Thursday that the current housing market is the "craziest" he’s ever seen.
 

TAREK EL MOUSSA: I think once the affordability index disappears, meaning the entry-level buyers can't buy a home, I think we're going to see some changes. You know, I think the entry-level buyer, if they have to pay a million dollars as an entry-level home, I think I think we're going to start seeing the peak of the market. When is that going to happen? I have no idea. It might be a year from now. It might be three years from now, but we've just been in the craziest market I've ever seen. 

…

In my opinion, there will not be a crash, but there will be a correction, and it's different because people have skin in the game. They have equity in their homes. People in California bought a house in 2010 for $250,000. Today it’s worth $750,000. Back in 2007, and 2008 everybody had zero down loans and they refinanced 100 percent of the equity. 

CLICK HERE TO WATCH THE FULL INTERVIEW

Oil Futures Settle Higher For 5th Straight Session

Crude oil prices moved higher on Thursday, extending gains to a fifth straight session on recent data showing a drop in U.S. crude inventories, strong U.S. employment data and optimism about increased demand in the U.S. and Europe.

Oil prices drifted down earlier in the day as traders continued to closely follow the developments with regard to negotiations over the Iran nuclear deal.

West Texas Intermediate Crude oil futures for July ended up by $0.64 or about 1% at $66.85 a barrel.

Brent crude futures were up by $0.43 or 0.63% at $69.16 a barrel a little while ago.

Iran and world powers are in talks in Vienna, discussing reviving the 2015 nuclear deal, formally known as the Joint Comprehensive Plan of Action. According to recent reports, the latest round of talks was constructive and the parties made meaningful progress.

Meanwhile, the Organization of the Petroleum Exporting Countries and its allies are scheduled to meet next Wednesday (June 1), to discuss energy market conditions and the cartel’s production policy.

Data released by the Labor Department said initial jobless claims in the U.S. slid to 406,000 in the week ended May 22nd, a decrease of 38,000 from the previous week’s unrevised level of 444,000. Economists had expected jobless claims to dip to 425,000.

Jobless claims decreased for the fourth consecutive week, once again falling to their lowest level since hitting 256,000 in the week ended March 14, 2020.