Gold Scores a Solid 1st Quarter Performance

While closing lower on the week and higher on the day, one only needs to stand back to see the respectable performance in gold prices this year. Gold closed out the month of April with a moderate gain of 1%. This came following a dismal performance in March, in which gold prices closed relatively unchanged, gaining roughly 1 dollar during the month.

It was January and February in which market participants witnessed the greatest gain in gold pricing this year, with gold gaining roughly 8%. However, gold prices altogether increased approximately 9.4% during the first quarter of this year. Despite this respectable gain of 9.4%, the U.S. economy grew only 0.7% in the first quarter.

Slow GDP Growth Characterizes 1^st Quarter performance

Per the Washington Post, “The U.S. economy expanded at its slowest pace in three years in the first quarter of this year, according to government data issued Friday morning, as spending by consumers grew at a slower pace and government outlays fell.

America’s gross domestic product, a broad measure of economic growth, grew at an annualized rate of just 0.7 percent in the first three months of 2017, a significant slowdown from the previous quarter that economists say is more likely due to measurement error than to Donald Trump’s performance as president.”

Best Week of the Year for the Dow and a Milestone for the Nasdaq Composite

With all its volatile market swings, the Dow Jones Industrial Average had its strongest week of the year. As reported in The Street, “… the Dow did end the week with its best gains of the year. The blue-chip index had rallied earlier in the week on a series of positive earnings from the likes of Caterpillar, DuPont, and McDonald's.”

This, however, pales when considering the milestone reached earlier this week in the NASDAQ Composite Index. After reaching 5000 on the index over 17 years ago, the tech-heavy index broke above 6000 for the first time in history.

It is hard to say what the next quarter will bring. However, if the 1^st quarter of 2017 is any indication of what lies ahead, we can expect gold prices to track higher and tech stocks to rule the equities markets.

Wishing you as always, good trading,