Market Update 30 Aug 2013: Gold Stocks Tumble
Markets were mostly lower this week. Bitcoin gained more than any other asset class, while gold stocks showed the greatest losses. Silver and long term bonds were the only other assets in the black.
Government-issued currencies all declined, with the Euro leading the way, falling 1.7% and the Canadian dollar losing 1.3%. The USD closed at 22.3 mg, down 1.2%, now 44.9% above its half-life curve. Bitcoin, the free market internet currency, rose 12.5% to close at 3 g. Volume remained light at 58 kg.
Bonds were mixed again this week, with the short term SHY falling 1.2% alongside the underlying USD, while the long term TLT gained 0.4% to close at 2.36 g. Although rising slightly, TLT is still trading below its 200 day moving average.
Stocks were all lower, this time led by the HUI Gold Bugs Index, which fell 8.1% to 5.66 g. The S&P 500 was down 3.0%, while the Dow Jones Industrials gave up 2.6% to close at 330.3 g. The Dow is still above its 200 day moving average, and is sitting 61.8% above its low of last November.
Commodities also declined, with the sole exception of silver, which gained 1.2% to close at 0.527 g/oz. Copper, down 4.6%, and Platinum, down 2.8%, were the worst performing commodities. Crude oil was little changed, falling 0.1% to 2.4 g per barrel.