Gold Jumps 3.33%; US Equities Mixed; Nasdaq Futures Down 0.17%; US 10-Year Yield Down 1.13%

Lead Gold surged 3.33% today, reaching a 2-month high. US equities were mixed, with Nasdaq futures down 0.17% while S&P futures gained 0.21%. The US 10-year yield fell 1.13%. Session narrative US equity markets closed mixed today. The S&P 500 ETF gained 0.23%, the Dow ETF rose 0.24%, and the Russell 2000 ETF was up 0.45%. Conversely, the Nasdaq 100 ETF declined 0.20%. Equity futures largely mirrored these movements, with S&P futures up 0.21% and Dow futures up 0.24%, while Nasdaq futures fell 0.17%. Russell futures also saw a gain of 0.46%. Volatility, as measured by the VIX, decreased by 6.12%. In the rates market, the US 10-year yield dropped 1.13% to 4.65%, and long-duration Treasuries (TLT) rose 1.69%. The US Dollar Index (DXY) weakened by 0.86%, with EUR/USD gaining 0.89% and USD/JPY falling 0.87%. Commodities experienced significant upward momentum, with Gold jumping 3.33% to $4567.9, marking its highest level since early June. Silver also saw a substantial increase of 3.84%. Crude oil prices were up modestly, with WTI crude gaining 0.14% and Brent crude rising 0.41%. Natural gas remained unchanged. Cross-asset check Gold's rally to a 2-month high was supported by a rally in long-dated US Treasuries, which followed the Treasury's announcement of increased nominal long-end buybacks. This move contributed to the weakening of the US Dollar and a decline in yields. Equity performance was bifurcated, with broader market indices showing slight gains while tech-heavy Nasdaq lagged. The decrease in the VIX suggests a reduction in overall market anxiety. Geopolitical developments, including discussions on Syria's sovereignty and the opening of a protected shipping corridor in the Strait of Hormuz, continue to be monitored. The US total public debt outstanding exceeding $40 trillion remains a significant macroeconomic backdrop. Themes & continuing stories Geopolitical tensions remain a key theme, with the US State Department discussing Syria's sovereignty and Israel's right to self-defense, and the US military establishing a shipping corridor in the Strait of Hormuz. Commodity markets are active, with gold and silver showing strong gains, and crude oil prices seeing modest increases. The US Treasury's plans for larger long-end bond buybacks are influencing rates and the dollar. The US total public debt outstanding exceeding $40 trillion is a continuing macroeconomic story. What’s ahead Looking ahead, market participants await Thursday's EIA report on U.S. natural gas inventories, which are expected to show a 19 billion cubic feet increase last week. Additionally, SPCX shares are set to experience an IPO-related lock-up release tomorrow, August 20, involving up to ~319M shares.