Weekly Update 27 Jan 2017
This week saw a trend reversal, with almost every asset class rising in value; the lone exception was palladium, which fell 3.9%. The week's biggest winner was once again Bitcoin, which gained 4.4%. Copper and coffee were also strong, rising 3.8% each.
All government-issued currencies were higher, led by the Canadian Dollar, which rose 3.0%, more than offsetting last week's losses. The Chinese Yuan gained least, adding 0.9%. Bonds were also higher, with USD cash up 1.3%, the short term SHY up 1.4%, and the long term TLT up 1.1%.
Stocks were all higher, led by the Nikkei 225, which rose 3.0%. In the US, the Dow gained 2.7% and the S&P 500 gained 2.4%. Gold stocks continued their rise, with the HUI gaining 1.4% to close at 5.32 grams.
In spite of the hoopla over the Dow price in dollars making new highs and closing above 20,000 this week, it is worth noting that measured in gold, the index is actually down 3.3% from one month ago, and down 63% from its all-time highs.
Commodities were mostly higher; only palladium lost ground, falling 3.9% to close at 19 grams. The largest gains were in copper and coffee, up 3.8% apiece. Platinum rose 1.5% while silver was little changed, up just 0.2% at 0.44 mg.