As this holiday week begins, we find that both safe haven and risk-on assets are in play. As of 3 o’clock EST, we have both the precious metals complex and US equities posting substantial gains on the day.

US Equities Post Solid Gains, NASDAQ on Pace for New Record High.

Today marks the final day before traders and investors call it a wrap and begin their holiday season celebration. The overwhelming characteristics that defined today’s trading activity were quiet and subdued.

In extremely light preholiday trading, both gold and equities traded modestly lower. All the while, the US dollar continued to show strength and gain value. As of 3 o’clock EST, the Dow Jones is lower by 22 points (.11 %) at 19,920. Spot gold is currently trading at $1,129.25, a net loss of about $2.00 (-.19%) per ounce.

Three Equals Two X Two

Gold prices ended today’s trading session fractionally lower in an extremely quiet and slow manner. Bearish sentiment continues to dominate price action.

Gold prices have declined for the last seven weeks, with consecutive lower lows for six of those seven weeks. Since the presidential election was held on November 8, gold has lost approximately $200 value.

The brass ring is certainly within reach as the Dow inches closer to 20,000. US equities continue to gain tremendous value, today coming within 13 points of that elusive number on an intraday basis.

With the Christmas holiday, just days away, and New Year’s just around the corner, I am amazed at how quickly this year has passed. I am even more amazed at the events that have unfolded over this last year. 2016 is turning out to be not only a transitional year, but also a transformative year.

This week, traders and investors certainly had a multitude of new stories to focus upon. They also have a lot to digest when it comes to how these events will affect the markets. Today’s announcement that China had seized a US drone in international waters and the information about Russian hacking to affect last month’s presidential election and the final FOMC meeting were at the forefront.

Yesterday’s statements made by the Federal Reserve are just beginning to be processed by traders and investors. The immediate knee-jerk reaction and response has now dissipated.

The Federal Reserve’s final FOMC meeting for 2016 concluded today. In a largely anticipated move, the Fed announced an interest rate hike of 25 basis points (.25%). This rate hike accompanied statements containing their new economic forecasts.

In an astonishing combination of unrelated events, tomorrow’s Federal Reserve decision could be the final impetus that motivates traders to push the Dow Jones Industrial Average above 20,000 for the first time in history.