Spot gold continued its rally on Friday, adding better than $7 per ounce (+0.6%) to trade north of $1,300/oz, the first time the yellow metal has reached this milestone since the middle of October.
Today is not only the last session of the month but also the last trading day of the year. Expect some tax-related selling and volatile year-end action, especially amid light trading volumes with the New Year’s holiday this weekend.
If gold holds at $1,300/oz, it will log a 13% gain for 2017 after advancing about 8% in 2016.
Meanwhile, the silver price added 0.5% (+9¢) to $16.93/oz. Platinum gained $6 (+0.65%) to $932/oz while palladium lost $6 (-0.6%) to trade back around $1,050/oz.
Looking ahead to 2018, the first month or so of the first quarter has been kind to gold in recent years. At the same time, the stock market shows no signs of pulling back. Sentiment regarding the economy, interest rates, geopolitics, and corporate earnings will go a long way toward determining whether equities start the new year off on the “right foot”—or if they stumble out of the starting gate.
The U.S. dollar fell by 0.3% to 92.3 on DXY index, extending its losing streak. The USD is now near its 2017 lows set in September and has tumbled nearly 10% over the course of the calendar year. By contrast, the euro is trading near $1.20 and is poised for its best annual performance since 2003. The pound sterling also added 0.55% to move back above $1.35. The Japanese yen gained 0.3% to ¥112.5 per dollar.
Stock indices in Europe were mostly lower while shares in Asia ended mixed overnight. London’s FTSE 100 index was up sharply this morning (+0.8%) to a new all-time record high. According to futures, equities pointed about 0.2% to 0.3% higher on Wall St. The 10-year Treasury yield held steady around 2.43%.
Commodities continued to trade higher, with WTI crude oil remaining at a two-year high above $60 per barrel. Brent crude also added 0.45% to trade near $66.50/bbl. Copper prices fell for the first time in three weeks. In other “commodities,” bitcoin recovered back above $14,000 yet the cryptocurrency remains close to 30% off of its all-time high. Since South Korea is cracking down on runaway speculation in the crypto market, buyers in the country are paying as much as a 20% premium to trade BTC. This is in addition to dramatically higher transaction fees to trade in bitcoin and convert it to fiat currencies.
The opinions and forecasts herein are provided solely for informational purposes, and should not be used or construed as an offer, solicitation, or recommendation to buy or sell any product.