Market Update 31 May 2013: Gold Stocks Moving Up


The markets were mixed this week, with most asset classes lower. The biggest exception was gold stocks, which continued their advance for a second week.

Bitcoin gave back some of last week's gain, dropping 1.6% to close just below 2.9 g. Trading volume continued very light throughout the week, but picked up over the weekend. Although prices have been fairly stable for the last few weeks, you should expect more volatility as volume increases.

The Japanese Yen was the strongest of all the currencies, gaining 0.9%, with the Euro in second place, rising 0.5%  to close at 29 mg. The USD was lower by 0.3% to 22.3 mg, leaving it 38.9% above it's half-life curve – unchanged from last week.

Bonds were lower, with short term SHY dropping 0.4%, while the long term TLT fell 2.3% to close at 2.55 g. TLT is now sitting right on support/resistance at 2.55 g after touching 2.53 on Thursday. This level has been pivotal many times over the last 5 years. Stay tuned for more exciting bond action!

TLT in gold

Stocks were mostly lower, led by the Nikkei, which lost 4.9% for the second straight week to close at 3.04 g. The HUI Gold Bugs Index was the only rising equity class again this week, gaining 7.9% to close at 6.12 g – its best showing in the last 5 weeks. Like long bonds, the HUI sits at a crucial level. It will be interesting to see whether gold stocks can continue to rally, or if they will resume dropping towards their old lows.

HUI in gold

Commodities were mixed this week, with Silver climbing 0.5% and Platinum unchanged, while the rest declined. Cotton, down 2.9%, and Crude Oil, down 2.6%, led the decliners.

Table of prices in gold for week ending 31-May-2013

Comments on Market Update 31 May 2013: Gold Stocks Moving Up Leave a Comment

June 11, 2013

Nancy Crutcher @ 12:42 am #

I am not really knowledgeable about stock market but I really want to understand its flow. I do hope I get it right that the stocks for gold have increased. This is great news because for the past month I have heard the price of gold has drop down. Good thing now that it has inclined gained.

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