Gold Investors Keep Close Watch During U.S. Government Shutdown

APMEX

12/24/2018 9:17:12 AM

Daily Gold & Silver Market Report – 12/24/2018

• Volatility from U.S. government shutdown could boost Gold. 
• Bitcoin losing support from many on Wall Street.
• Stock markets see worst December since the Great Depression.

As the U.S. government shuts down due to disagreements between President Donald Trump and Congress, Gold investors are closely watching the situation. The price of Gold is known to rise during times of economic volatility and an extended shutdown could lead to a rally. Reports that Trump called for the dismissal of Federal Reserve Chair Jerome Powell has added to forecasts of instability as well. Investing.com reports trading volumes should be lighter this week because of Christmas and the fact that some traders have “already closed books before the end of the year.”
Markets could see some changes later in the week, with the U.S. expected to publish data regarding home prices. On Thursday, reports concerning consumer confidence, home sales and U.S. unemployment are also scheduled. Some details regarding manufacturing in the Chicago area will be announced Friday. If any of these reports are weaker than expected, it could add to the current market volatility and provide a boost for Gold and other safe haven investments.

Wall Street Traders Losing Confidence in Bitcoin

This past year may be looked upon as the year of crypto crash. At the beginning of the year, the cryptocurrency market was worth around $800 million and as of last week, $700 million had been wiped out, according to a Gizmodo report published by Yahoo! Finance. After reaching a peak of $20,000 last year, Bitcoin has fallen as low as $3,000, well below the predicted $6,000 floor. Many plans by Wall Street to develop cryptocurrency trading mechanisms have now been abandoned. Significant players in financial services such as Barclays and Goldman Sachs previously announced Bitcoin-centric services, but all planned launches have been delayed. The price crash is the likely driver of many of these abandoned efforts, but a lack of regulations for cryptocurrency could also be getting in the way. Some insiders have said plans are still being developed, but institutions want to launch projects at the right time and are quietly watching Bitcoin markets.

S&P Futures Down to Start Week

As online trading began Sunday, the benchmark S&P 500's e-mini futures contract opened about a quarter of a percent down. Futures monitored by Dow Jones and Nasdaq also declined by similar levels. Many U.S. stocks have taken hits in December, hammered by ongoing worries regarding the trade dispute with China. According to a Reuters piece in the New York Times, the S&P 500 saw its most significant month of loses in a decade. The report also suggests it is on track to see the most substantial December losses since the Great Depression. These losses could represent new opportunities for Precious Metals, as asset-holders look to hedge their risks by diversifying portfolios. 

At 10:05 a.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,268.80 Up $11.20
• Silver, $14.83 Up $0.11
• Platinum, $796.30 Down $2.50
• Palladium, $1,234.10 Up $5.40

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