Weekly Update 25-Nov-2016
A generally positive week for all asset types, with only coffee, down 2.3%, gold stocks, down 1.6%, and the JPY, off 0.5%, showing losses. The big winner was copper, which after catching it's breath last week, continued to skyrocket, gaining 10.4% this week. The major stock indexes were all higher, led by the Dow Jones Industrials, which gained 3.5% to close at 501.6 grams. Financial headlines have been filled with stories about this recent series of "highest ever" dollar prices for the Dow… but readers of Priced in Gold know that the Dow has yet to equal it's 2015 high of 523.5 grams, or it's 2007 high of 652.6 grams. And to really get into all-time high territory, the Dow will have eclipse its August 1999 high of 1393.2 grams – 2.8 times higher than today's price. Could that happen? Maybe some day, but probably not soon, and probably not without seeing considerably lower prices first.
The Canadian Loonie was the strongest currency in the list, gaining 2.2%, followed by the US Dollar, which gained 2.0%. Several currencies not on the list were much stronger, though, including the Australian Dollar and the Pound Sterling, which gained 3.1% each, and the New Zealand Dollar, which gained 2.6%. The weakest currency was once again the Japanese Yen, which fell 0.5%. Bitcoin took a breather after last week's 6.8% run, rising just 0.4% this week. Bonds were higher, but showed no appetite for longer maturities, with the long term TLT and short term SHY each gaining 1.9% while USD cash rose 2.0%.
All major stock indexes were higher, led by the DJIA and S&P 500, up 3.5% and 3.4% respectively. The weakest major market was the Japanese Nikkei, which gained 1.8%, again coupled with a falling Yen. Gold stocks were 1.6% lower, giving back about half of the prior week's gains.
As mentioned earlier, commodities were almost all higher, led by copper's massive 10.4% jump. Palladium rose another 4.1%, while silver gained 1.7% to close the week at 0.43 grams per ounce. Platinum was little changed, up just 0.1%. The only commodity to close lower for the week was coffee, which dropped 2.3%.