Gold short-sellers were in for a nasty surprise on Friday the 16th of December as gold jumped sharply. The metal pared its month-long decline as tensions between the United States and China flared up in the South China Sea. The metal retraced much of its rally and is now trading for around $1143.00 per ounce.
In Europe, the banking sector is a dichotomy. On one side, the Italian banks continue to struggle, and the government of Italy is ready to pump 15 billion Euros into Monte Dei Paschi to prevent it from collapsing. However, elsewhere in Europe, bank stocks are on a tear, continuing to surge based on Trump optimism and higher interest rates in the U.S. In Asia, the Chinese currency continues to fall.
In both China and India, gold demand remains weak because of government intervention in the market.
