Monthly Summary

December Monthly

After gold and silver plunged to their lowest levels since the summer in November, metals rebounded as COVID cases continued to surge globally and vaccine rollouts were and continue to be slower than expected. Gold jumped 6.5% to close just under $1,900 and silver soared about 17% to finish at $26.30.  Platinum rose 11.3% to reach its highest price since 2016 and palladium increased a modest 2.6% 

The month began with a worse than expected jobs report for November where 245,000 nonfarm payroll jobs were created vs. 440,000 expected. With additional stimulus in limbo, poor economic data coupled with a Biden win in November,  caused equities to surge on hopes that Congress would likely pass a COVID relief bill.  The bill came later in the month and equities continued their upward trajectory to close the month out at record highs.  The Fed reaffirmed its commitment to treasury buybacks and other tools to keep the struggling economy afloat further bolstering stocks.

Metals rose in tandem with equites through most of December but did not benefit as significantly from Fed aid and stimulus promises.  A struggling US dollar which fell about 2% in December and spent the month hovering around a 3-year low, further boosted precious metals, allowing them to finish the month strongly.

While most of the focus was on equities during the pandemic, precious metals actually outperformed stocks in 2020 with the exception of the Nasdaq—which rose 43% to post its best yearly performance since 2009. Gold rose 24.5% for the year and silver jumped 47.3%.  Platinum, which had been lagging prior to the pandemic rose 10.3% and palladium finished 2020 up 26.9%.  In contrast, the Dow and S&P 500 rose 7% and 16% respectively.  Overall, metals saw a resurgence in popularity in 2020 and physical demand remains strong heading into the new year.  With record breaking central bank QE across the globe and interest rates expected to remain near zero for years to come, gold is in an excellent position to benefit from overvalued equities and inflation worries down the road. 

 

 

 

 

Historical Trends & Pricing

Commentaries

January 21, 2021

Gold and silver fell in tandem with equities today as COVID cases continue to rise and the effects of holiday travel continue to roll in,  in the form of rising deaths and hospitalizations. The Biden Administration revealed some details of their proposed stimulus package which trumps December’s $900 billion relief bill. Stocks aren’t responding to the likelihood of new stimulus as they have in the past, however, with all major indices trading in the red. Even with today’s drop, gold and silver are looking to close the week up 1.5% and 3.0% respectively.

January 20, 2021

Gold and silver climbed today to their highest levels in nearly two weeks as the US dollar retreated slightly and has remained stagnant over the past month. Equities rose sharply with all major indices closing at record highs. The Nasdaq jumped 2% while the Dow and S&P 500 gained 0.8% and 1.4% respectively. Stocks had their best inauguration day in decades as investors seem ready to put the turmoil of this election behind them and embrace the certainty that came with today’s transfer of power, regardless of political affiliation.

January 15, 2021

Gold and silver dropped significantly today as the US dollar hit its highest level in over a month. Gold, which had spent the most of the week bouncing between $1,840 and $1,850 plunged as low as $1,822 today and silver fell nearly a dollar. For the week, gold and silver fell 1.1% and 2.6% respectively. Stocks didn’t perform much better, falling significantly on underwhelming retails sales for December and President-elect Biden’s proposed stimulus aid that pumps more money into relief checks and unemployment benefits and also proposes a federal minimum wage of $15.  That’s right; equities, which had spent months rising on stimulus hopes, reversed course once something more concrete was presented since it didn’t meet investors’ expectations. For the week, the S&P 500 and Nasdaq both shed 1.5% while the Dow fell 0.9%.

January 13, 2021

Metals are up modestly today with gold and silver trading at $1,855 and $25.50, still well below last weeks highs.  Gold seems to be holding steady right above its 200-day moving average of $1,853 and silver is currently about $0.15 above its 100-day moving average.  Stocks are up slightly across all major indices with the Nasdaq leading the way as tech stocks, which had been underperforming the past few weeks, are once again outperforming other sectors, at least for now.  The Nasdaq is currently up 0.70%, and the S&P 500 and Dow up 0.45% and 0.25% respectively.

January 11, 2021

Metals got a slight bump today as gold once again dipped below its 200-day moving average triggering a new round of buying from investors.  Silver benefited too as it regained the $25 level after last weeks selloff.  The US dollar rose about 0.50% today and equities declined across the board.  The Nasdaq, which had been outperforming the other indices in recent months, got hit hardest, falling 165 points on an intense tech selloff.

January 8, 2021

Gold and silver had one of their worst days in months, plunging over $80 and $2.50 respectively at one point. The dip comes as equities once again closed at record highs, ignoring poor economic data. Nonfarm payroll jobs fell 140,000 in December, the first decline in 8 months (vs. 50,000 gain expected) and unemployment held steady at 6.7%. Due to the Fed’s increasing intervention in markets over the past 10 months and the increased likelihood of stimulus amid an underperforming economy, investors celebrated the abysmal jobs report leading to another record day on Wall Street. Physical metal demand for precious metals remains strong and many investors view today’s decline as a good buying opportunity.  

January 6, 2021

Equities continued yesterday’s rally, un-phased by the events in D.C., and all three major indices closed at record highs today.  The rally comes as markets are beginning to embrace a blue wave in Washington and what that means for future stimulus, which has been a driving force in market trends over the last several months.  Metals were relatively quiet today, holding onto some of their gains while taking a backseat to stocks and Bitcoin—which continues to surge and is now trading near $40,000, more than double its price a month ago and a 35% increase this week.     

January 04, 2021

After hitting record highs today, equities reversed course and fell sharply on surging COVID case numbers and election uncertainty ahead of tomorrow’s Georgia runoff.  Markets love gridlock in Washington and polls are leaning towards a possible 50/50 split Senate,  giving Democrats control with the Vice President’s tiebreaking vote.  Precious metals, which soared earlier with stocks, are still strongly in the green to begin the new year, with gold and silver trading at $1,943.00 and $27.30, their highest levels since early-November and September respectively.  Stocks are on pace for their worst opening day of a new year in decades,  while metals are holding strong amid increasing uncertainty, which shows a divergent from recent months where equities and PMs moved in tandem.

December 30, 2020

Gold and silver climbed today in tandem with equities and are trading at $1,891.60 and $26.53 respectively, their highest levels since jumping Sunday night on positive stimulus news.  Stocks rose sharply this morning as investors eye this new round of stimulus.  Positive vaccine news continues to increase the appeal of equities.  The Dow is currently up 70 points, and the Nasdaq and S&P are up 0.25% and 0.15% respectively, well off their highs today, but still poised to end in the green.

 

December 28, 2020

Gold is relatively flat to begin another shortened week, currently trading at $1,880 while silver is up 2.5% at $26.50, its highest level since December 21. Metals are getting boosted by rising equities which hit intraday record highs today after President Trump signed the $900 billion stimulus bill after threatening not to late last week.  The Nasdaq and S&P 500 are currently up nearly 1% while the Dow is lagging, but still up 200 points or 0.7%.

December 23, 2020

Gold and silver rose today as the $900 billion COVID relief bill passed by Congress earlier this week remains in limbo after President Trump publicly expressed his displeasure with it and hinted at a veto in its current form. Particularly, Trump wants to remove foreign aid from the bill and up the amount of money allocated to stimulus checks. Equities seem un-phased by the possible holdup in new stimulus as this week’s jobless claims fell to 803,000 (85,000 less than expected). The Dow is up 250 points and the Nasdaq, which had been lagging earlier in the day, turned green and is currently up 0.2%.

 

December 18, 2020

Metals and equities declined today as all eyes are on a potential stimulus package which could be approved as early as this afternoon.  It seems unlikely, however, since Congress cannot even approve a budget to avoid a government shutdown 3 months into its fiscal year. Stocks are declining on the diminishing likelihood of more stimulus and bringing metals down as well. Even with today’s decline, though, gold and silver are on pace to end the week up 2.4% and 8.5% respectively.

December 16, 2020

Today’s Fed meeting was not unexpected, but it did rattle markets, at least initially.  Metals and equities dropped after the Fed announced it would leave rates unchanged and continue its strong treasury buyback program to combat the economic effects of the pandemic. Equities rebounded to levels near where they were trading before the Fed’s announcement, while gold and silver surged to much higher levels than before the decision. Stocks finished mix with the Dow down 45 points and the Nasdaq up about 0.50%. Gold is trading at $1,864, its highest level since November 22, and silver is trading at $25.45, its highest level in over a month.

December 14, 2020

Gold and silver slid today, first as equities saw large gains in the morning and then in tandem with equities when they retreated into negative territory.  The Electoral College officially solidified President-elect Biden’s November win and Pfizer’s vaccine became available to select groups in the US today.  Wednesday’s Fed meeting will likely be the most important economic news affecting markets this week, especially given last month’s unexpected decline in employment. Stocks were mixed with the Dow and S&P dropping and the Nasdaq finishing about 0.50% in the green.

December 11, 2020

Gold is currently up $6.00 and is on pace to end the week nearly right where it began at $1,840, while silver is trading at $24.00, down about 1% for the week. Stocks are poised to finish the week in the red after touching record highs on Wednesday before falling Thursday and Friday after stimulus talks stalled in Congress. The Nasdaq and S&P are currently down 0.5% and 0.3% respectively and the Dow is trading flat heading into the final hour of trading.

December 09, 2020

Gold and silver fell $36.40 and $0.75 today, having one of their worst days since prices bottomed out in mid-March.  The drop comes as the US dollar showed some signs of life, gaining traction on modestly rising bond yields and declining equities. The Dow finished down over 100 points, still holding onto its 30,000 level while the Nasdaq dropped nearly 2%.  The S&P fell 29 points after closing above 3700 points yesterday for the first time. 

December 07, 2020

Gold is up 1.4% to begin the week, gaining momentum as stocks retreat from record highs and the US dollar continues to hover around a 2 ½-year low.  Silver is currently up about 2.0%, trading at its highest level in 20 days at $24.65.  Stocks are mixed with the Dow down over 200 points—trying to remain above 30,000, the S&P 500 down 0.30%, and the Nasdaq up 0.40%. A second round of stimulus totaling $908 billion is likely to be passed by Congress shortly.  The majority of the funds are for extended unemployment benefits and small business relief, however, additional details on what the package includes are due out tomorrow.

December 04, 2020

Gold and silver closed at $1,838 and $24.25 to finish the week up 2.7% and 6.9% respectively.  The rise comes as the US dollar continues to decline, finishing down 1.1% for the week. The Dow, Nasdaq, and S&P 500 all closed at record highs today as investors brushed off November’s poor jobs report which came in well below expectations.  Only 245,000 jobs were created last month, falling short of 440,000 forecasted. Unemployment came in as predicted, however, dropping to 6.7%.

December 2, 2020

Precious metals continue their rally this week with gold and silver trading at $1,827.60 and $24.06. Gold and silver are currently up 2.1% and 6.1% respectively since last Friday.  Platinum is having a great week, breaking $1,000 for the first time since February, and is up about 4.5% for the week. Stocks are flat but are still hovering at record highs after having one of their best months in decades in November. Today’s ADP employment report showed 307,000 new private payroll jobs were created in November which is about 130,000 less than median forecasts. 

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