Stock Market Update Tuesday November 28, 2023 Precious Metals Gaining Ground
The indices continue to ascend, market breadth remains robust, and major technology stocks are at the forefront, suggesting the persistence of an upward trend. Moreover, seasonal factors continue to favor positive market conditions.
Away From Stocks
Dovish comments from Federal Reserve Governor Christopher Waller have triggered a significant rally in rates. Two-year Treasury yields saw a notable drop, diving 13 basis points to 4.73% - their lowest since mid-July. Meanwhile, the long bond edged slightly down to 4.52% from 4.53% on Monday. These movements in treasury yields reflect shifting investor sentiments and expectations in response to the Federal Reserve's commentary.
In the commodities market, WTI crude oil experienced a rise, breaking above $76 a barrel. Gold is also making headlines, approaching a 52-week high at $2,040 per ounce, while silver gained roughly 1.5%. These movements in precious metals, particularly gold's approach to a yearly high, signal strong investor interest in safe-haven assets.
The VIX, a measure of market volatility, remained below 13, indicating a relatively calm market environment. In currency markets, the greenback showed some weakness, with the Japanese yen notably strengthening. The gold mining sector had a positive performance, with larger-cap gold miners trading in significant volume, a positive sign for the industry.
These three charts indicate a bullish trend for stock markets, and a weekly close below the current lines would be an even more significant bullish signal.