TheStreet’s J.D. Durkin brings the latest business headlines from the floor of the New York Stock Exchange as markets open for trading Tuesday, December 5th.
Full Video Transcript Below:
J.D. DURKIN: I’m J.D. Durkin – reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Stocks are getting off on the wrong foot to kick off the month after a strong November. Investors are feeling some doubt that the Fed could cut rates in the near future. Markets are pricing in a 15 percent chance that the central bank lowers interest rates in January.
Investors are turning their attention to the labor market as they look ahead to Friday’s November jobs report.
In other news – the price of gold is on the rise. On Monday gold rose to a record $2,135 an ounce – surpassing the previous high, which was set in August of 2020, by about $60.
Several factors contributed to the new all-time high, including expected rate cuts by the Federal Reserve, a weak dollar, and geopolitical tensions. When interest rates fall, or are expected to fall, the demand for treasury bills, bonds, and notes decreases because the interest payments become lower. And with the Fed expected to cut rates as soon as March, gold is becoming more attractive.
Gold also becomes more attractive during economic and geopolitical turmoil. Gold prices have increased for two consecutive months while the war between Israel and Hamas has continued.
And it seems like the trend will continue. A new survey by the World Gold Council found that almost a quarter of all central banks plan to increase their gold reserves over the next 12 months.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m J.D. Durkin with TheStreet.
