Thin and quiet trading on markets in this holiday week between Christmas and the New Year, as expected. The only action continues to be in the commodities market and in particular, precious metals. The precipitous rise of silver, the correction and the resumption of the upward action, has been the talk of markets. There are many reasons for this, including demand as a store of wealth, industrial and speculative. Much of the action is in the highly leveraged derivatives market. The US Dollar eased somewhat overnight, with the EUR trading above 1.1750, while the GBP holds above 1.3450.The softer reserve allowed the AUD to regain 0.6700, while the NZD looks to hold 0.5800. Precious metals volatility will impact the Australian market and any serious moves, could spread to wider markets. The ‘Santa Claus Rally’ has not yet eventuated, but it has been a strong year on global equities and uncertainty to close out the year, may set an unwelcome tone for 2026.
