Metals Spike Post Labor Day

September 6, 2016 10:36AM CDT

Equity markets are slightly higher at mid-point of US trading following the Labor Day break. On a quiet news and trading day, equities are relatively unchanged, continuing a month of slow grinding to the upside. December gold futures are surging, trading near $1,351 (+25), with silver pushing up through $20.00 per ounce. The September S&P contract is higher near 2181 (+3.5 pts.) and the Dow is in green by 23 points at 18,503. December bond futures are up at 13112 and 17031 for Notes/Bonds respectively.

Crude oil is unchanged at roughly $44.37 in the October contract as traders attempt to decipher recent Iranian output projections and overall OPEC policy going into next year. Natural gas is pulling back, in the red at $2725.

Grains are mixed with the US dollar taking a beating. Corn ($3.26) and wheat ($3.96) are down, while soybeans ($9.57), moving up on Chinese buying and too-much-rain fears, remain a sell. Weather, in terms of temperature and precipitation, remains almost ideal as the summer closes and harvest looms.

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