Very light trading across the board was the rule today, as the UK, Canada and Australia markets were all closed for Boxing Day. In U.S. trading, stocks and the dollar mushed a bit lower, as gold appeared to be regaining some of its safe haven traits instead of acting like a plain old commodity. One contributor to the late morning spike seemed to be some buying upon the expiration of January options contracts. The extremely light trading today served to magnify this buying. Silver followed gold’s spike, was was unable to hold on to the gains like gold was.
Part of the positive influence on gold was the yen dropping to a two-year low. U.S. economic data today came in lower than anticipated, and retailers reported only a small gain in holiday sales, keeping stocks slightly lower all day.
Tomorrow brings the reports for new first-time jobless claims, consumer confidence, and new home sales. Of course, big question is the fiscal cliff, which it seems we are more than likely to get a taste of before Washington kicks the can down the road once again.