Gold prices ticked higher Wednesday as weakness in USD offset worries about the aid/relief/ stimulus bill after President Trump threatened to veto the over porked legislation.
Spot gold rose 0.3% at 1,865.01oz by 0333 GMT, while US gold futures held steady at 1,869.80oz.
USD edged down 0.1% Vs a basket of peer currencies, increasing gold’s appeal.
The market has priced in a lot of virus-related chaosand the US fiscal stimulus deal, gold will likely tread water in here and any potential upside will come from new uncertainties.
Gold has risen nearly 23% YTD on low-interest rates that reduce its opportunity cost and as a hedge against coming inflation.
Gold will recover its historical relationship with real yields, and real yields will likely continue to fall so there is no reason to think gold cannot make another push for 2,000++ in Y 2021 if this trend prevails.
Silver rose 0.8% at 25.31oz, Platinum rose 0.1% at 1,002.86 and Palladium gained 0.2% at 2,318.23oz.
Tuesday, the benchmark US stock market indexes finished at: DJIA -200.94 to 30015.45, NAS Comp +65.40 at 12807.92, S&P 500 -7.66 to 3687.26
Volume: Trade on the NYSE came in at 909-M/shares exchanged
HeffX-LTN’s overall technical analysis of the US major stock market indexes is Bullish with a Very Bullish bias in here.
- NAS Comp +42.7% YTD
- Russell 2000 +19.2% YTD
- S&P 500 +14.1% YTD
- DJIA +5.2% YTD
Looking ahead: Investors will receive the weekly MBA Mortgage Index, November Personal Income, Personal Spending, PCE Prices, core PCE Prices, Initial Claims, Continuing Claims, the December FHFA Housing Price Index, November New Home Sales, and the final December Michigan Consumer Sentiment Survey (MSI) Wednesday
Have a healthy Happy Christmas Holiday week, Keep the Faith!