Every asset class except gold stocks was higher this week. The HUI 'Gold Bugs' index fell 2.3% to close at 8.12 grams, about 8% above its low for the year.
The strongest assets were commodities. In the lead was cotton, which rose 4.6% this week to close at 13.1 mg/lb – recovering most of last week's losses, but still trading only 8% above its all-time low of 12.1 mg/lb set two months ago on Sep-30. Copper and silver were also strong, rising 3.7% and 3.1% respectively. Even coffee, which continues to trade just above its all-time low, caught a break this week, rising 0.5% to close at 25.6 mg/lb.
Bitcoin again outperformed all of the government issued currencies, gaining 2.5% for the week to close at 226.2 mg. The Euro rose 1.3% and the Yen gained 1%, while the USD lagged behind, up only 0.5%.
Long term bonds outperformed short term bonds this week, but neither was able to make up for their heavy losses last week. SHY gained 0.5% (in line with the USD) while TLT rose by 1% to close at 2.25 g. TLT is getting close to its 200 day moving average, and next week may bring a test of that key resistance level.
Putting gold stocks aside, the major equity indicies were all up this week. The Nikkei, helped by the strengthening Yen, rose 1.2% while the S&P 500 rose 1%.