Metals Shine While Markets Stall

by | Jan 16, 2025

Howdy folks,

Today was a mixed bag in the markets, and honestly, I wasn’t feeling too enthused about it.

Here’s the rundown:

  • Retail sales missed expectations.
  • Jobless claims came in higher than expected, signaling more layoffs.
  • But the Philly Fed Manufacturing Index blew expectations out of the water.

Put that all together, and here’s the story the data is telling: Manufacturing is picking up, layoffs are rising, and consumer spending is slowing.

This mix of data sent gold, silver, copper, and bonds higher — while the major indices mostly shrugged it off and drifted lower.

The Metals Market Moves

Gold spiked today after the data dropped, following its usual inflation-hedge / safety play narrative. Silver and copper joined in, pushing higher as well. Metals are one of the few areas showing real movement in this otherwise slow market day.

I’ve mentioned this before (here and here), but it bears repeating:

Right now, metals are behaving as a clear inflation play. With consumer spending slowing and layoffs ticking up, traders are flocking to gold and its counterparts to hedge against economic uncertainty.

Market Outlook

The major indices didn’t seem to care much about today’s data. They’re hanging out near recent levels but showing a bit of weakness. It’s like the market’s waiting for something bigger to sink its teeth into.

That “something bigger” might come tomorrow. With a three-day weekend ahead, I’m expecting a more active trading day to close out the week.

What to Watch

Here’s what I’ll be keeping an eye on tomorrow:

  • How metals like gold and silver respond to any new data or market action.
  • Whether the indices pick up some momentum before the long weekend.

As for today, I stuck with what was moving — metals — and put out a trade with my Gold Stream strategy. But outside of that, I’m content to sit on the sidelines and let the market come to me.

Final Thoughts

Some days are just like this: slow, choppy, and not much to get excited about. That’s okay. The market will always be there tomorrow, and sometimes the best move is no move at all.

Let’s see what tomorrow brings. Stay sharp out there.

— Geof Smith

P.S. Jack Carter’s revealing the 3 tickers some are calling “The New A.I. Stock” plays for 2025. Get all the details right here!

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