The stock market continues to show record performance as gold prices climb on Thursday, the Dow is up, the S&P is up, as is the NASDAQ. Investors continue to be attracted despite a market pullback, with the XAU index down 6% to 8th place.
According to recent reports which are made keeping in mind the consumer’s debt trend, borrowings have been encouraged by the federal government policies since WW1, fueling the 1920s bull market.
In Thursday dealings, December gold was up 1%, at $2,702.80 an ounce on Comex. It settled Wednesday at $2,676.30, down 2.7%. Now, according to Dow Jones Market Data, this was the largest dollar decline for a most active contract since June 2021.
“Following the election results, it’s natural for investors to look at the short-term price dip and wonder what it means for the asset’s future performance,” said Joe Cavatoni, senior market strategist at the World Gold Council, in emailed commentary.
“What we would urge them to remember is that it’s policy over party: the direction of the [U.S. dollar] and rates remain more important than the market’s reaction to the election as an event.”
He continued: “We’ll know more about how the Trump administration may affect prices in the next three to six months once there is more clarity on policy.”
However, he added, “If potential tax cuts, higher spending, and tariffs come to fruition, there may be an impact on the Fed’s rate cycle that influences gold price performance throughout 2025.”
Also, attorney Clint Barkdoll shared thoughts on stocks going high, “Futures are up hundreds of points again this morning. It is just incredible. A lot of the Wall Street analysts think this is going to keep running in the next year. This is all based on the election. They are optimistic about Trump and what his administration is going to do.”
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