Gold Slides as Dollar Rallies

As gold continues to trade lower while the dollar continues to strengthen, equity markets are poised for a positive opening. This morning’s $16 dip in the price of gold has taken it below $1,900 to around $1,833/ounce. Treasuries are steady with the Ten-Year still loitering around 67 basis points.

Earlier this morning, the Mortgage Bankers Association announced that new Mortgage Applications rose 6.8% for the week ending September 18th. A little later, the FHFA is expected to report that it’s House Price Index rose by 0.5% in July. We’ll also be awaiting another report from Markit Services telling us that its September PMI for Manufacturing rose slightly to 53.5 from 53.1. Yesterday brought us some unexpected positive manufacturing news with the Richmond Fed’s Manufacturing Index surprising analysts with a move from 18 to 21 this month against an expected drop to 12. The Services PMI from Markit may not fare as well with last month’s value of 55 expected to slip to 54.7. The Treasury will also be conducting a $53B Five-Year note auction today.