Precious metals were again center stage, as their skyrocketing accent continued to record new highs. Silver soared, up 7.7% on Friday, finishing at $76.49 a troy ounce, up more than double this year. Gold was also active, gaining 1.1%, closing at $4,529.10 a troy ounce, up over 70% this year. Platinum has had a nice run-up, resting at $2,491.10, up over double since the start of the year. Precious metals, often tabbed “safe havens,” have become more ‘physical investments, desired by many investors as a hedge against shaky world conditions and inflation. The U.S. struck specific Islamic State locations in Nigeria that had been targeting Christians and other religious sects according to President Trump. He has vowed to “wipe out the perpetrators.”
Stocks fell Monday as profit taking in precious metals drove the indexes lower. The ‘blue-chip’ Dow Jones Industrial Average slid 249 points as market leaders lost steam. Stocks ‘whip-sawed’ all session as trading was light in the shortened week. Silver trading led all sectors Tuesday retreating 8.7% with gold losing 4.5%, as both metals have run to record highs in recent weeks. Copper, a recent high flyer has also hit record levels, up 4.8% in recent days. The months-long ascent of precious metals and copper finally came to a reckoning as investors moved to other favorites, taking short term profits. High techs and artificial intelligence stocks are leading the markets, leaving investors with many questions about their ability to maintain prices, and sustainability of demand, as many feel they have ‘out-run’ aggressive expectations. According to Daniel Ghali, a TD Security Strategist: “A cycle top in silver could likely pull the entire [metals] complex lower given it could deflate the speculative fervor from retail traders,” as he wrote in a note. Bond traders were shaky all week as the yield on the 10-year Treasury yield slipped lower to 4.115%. Oil was up slightly as talks between Ukraine and Russia were at a stalemate driving the market slightly higher. U.S. benchmark crude has settled near $58.08 a barrel, a very low level as world markets react to unrest.
As 2025 comes to an end, and the indexes are near record highs, the past year was truly a year of endurance. Even the “Liberation Day Tariffs” could not derail the economy in the long run, with indexes taking a short downward trend then getting right back on track. The S&P 500 rallied upward 17%, finishing a “3 year run.” Many Wall Street nay-sayers had spoken of a market retreat, profit taking and overall falling indexes. To the contrary, the indexes have demonstrated a resilience echoing a stock market able to take on the ever-changing complex economy. New tariffs, stubborn inflation, have not been able to stall the economic growth this past year. The Dow Jones Industrial Average climbed 14% this year as the bread and butter index withstood much pivoting of capital. The heavy-laden Nasdaq Composite with many high techs did not run out of steam and surged 21%. Tuesday’s Dow Jones hovered near flatline down 95 points, as did both the Nasdaq Composite and S&P 500. According to J.P. MorganChase, their economists said: “Jobless expansion might mean productivity growth will continue to boost wages and wealth gains and help the economy plow ahead. On the other hand, weakness in the labor market–and all the spending that depends upon it– might signal more fragility ahead.” David Stubbs, chief investment strategist at AlphaCore Wealth Advisory stated: The U.S. is a lot better with rates at 4% than at 2%. At 2% you’ve got a problem.”
RUMBLINGS ON THE STREET
Keith Buchanan, senior portfolio manager at Global Investments, WSJ – “The market is starting to feel like it needs to broaden out, he said. “Thee’s almost this undeniable pressure for the bull market to broaden out of it’s going gto continue.
Bill Northey, investment director at U.S. Bank Wealth Management, WSJ – “We need to have a number of reports that follow these catch-up data items that either confirm or refute the trends,” Mr. Northey said.
Ursula von der Leyen, European Commission President, WSJ – “Europe’s Independence will depend on its ability to compete in today’s turbulent times. But we know the economic headwinds are strong.”
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