As we are quickly approaching the end of the fiscal year, the majority of traders are hoping to get their portfolios in order before their hard-earned holidays. Still, there are always opportunities to be made and money never sleeps. Let’s take a quick look at the latest round-up of important stock market news and highlight some stories that could very well impact the individual trader. These stories have been featured across many large investment portals such as CMC Markets.
Will the Bitcoin Rise to the Occasion?
It can be argued that the most important currency-related story which has occurred over the past week has involved the meteoric rise of the value of the Bitcoin. After analysts projected that its value could breach $10,000 dollars, this cryptocurrency went on to touch $11,400 dollars before losing an amazing 20 percent of its total value.
It is therefore interesting to note that the United States has just signalled that two domestically based exchanges can begin offering Bitcoin futures to their clients. CME Group and CBOE Global Markets will begin trading this currency later in December. The main question is whether or not investors will be keen to become involved with an asset that has experienced such wild swings.
Will Gold Begin to Inch Forward?
With the dollar losing ground and thanks to the tenuous nature of the Trump administration, many would expect the prices of gold to begin to rise. However, we have not seen any type of protracted upward momentum over the past few weeks. Why is this the case and can we expect changes in the coming days?
It is important to keep in mind that while the price of this yellow metal gained some ground in late trading, it is still at or near a three-week low. One factor which has likely impacted the price of gold per ounce is the relatively positive sentiment associated with the United States equity markets. In other words, traders tend to be more focused upon short-term ventures as opposed to reallocating a sizeable portion of their holdings into gold. If the dollar makes any type of rebound, we could see a further exodus from the precious metals markets.
However, politics could also play a potentially positive role. Former national security advisor Michael Flynn has just been officially charged with several offences. This could cause the Trump administration to appear even more fractured than it already is. Should domestic investors begin to lose faith in his other promises such as future tax reforms, we could very well see the dollar begin to falter. This would imbue the price of gold with much-needed forward momentum. It is still doubtful that this metal will be trading anywhere near its October high of $1,360 dollars between now and the end of 2017.
Is a Reversal on the Horizon?
Although it cannot be denied that 2017 has been a turbulent year for the markets as a whole, we need to keep in mind that the Dow Jones has broken many records during this very same time. It recently broke through 24,000 points for the first time in its history and some believe that we have entered into entirely new territory. There is also the fear that this bubble may indeed burst in 2018; particularly if the proposed tax reforms within the United States fail to materialise. Traders will therefore be looking to CMC Markets and other major authorities in order to analyse any sudden movements that may occur between now and the end of the 2017 financial calendar.