Gold and materials strong, says Nasdaq analyst

By Staff | May 9, 2016 | Last updated on May 9, 2016
1 min read

Materials pulled back last week on slight weakness in gold. Still, gold is up +20% year-to-date while the materials sector is up +40%, says Prab Sagoo, associate director at Nasdaq Advisory Services, in his weekly market commentary.

Read: Gold: The ultimate safe haven, or just a shiny metal?

Further, weak U.S. data at the end of this week would delay any near-term Fed increases, he adds. That would support gold further.

Read: Investors running out of safe havens

More highlights

  • Despite a pull back last week from the TSX, the index continues to outperform; energy and healthcare names were both down in excess of 4% last week.
  • Small caps outperformed once again, with volumes in line with levels this year. But, both Canadian and U.S. employment data disappointed at the end of last week.
  • The ongoing wildfire in Alberta will likely continue to support oil prices in the near term, which will benefit the TSX’s heavily weighted energy and financials components. However, Canadian economic growth for the second quarter have been scaled back to zero by many economists, as the region will need to rebuild. Read: What’s the impact of the Alberta wildfire on economy?
  • TSX momentum remained negative last week, while S&P 500 momentum was moving into positive territory.
  • The Canadian economic calendar is very light this week, while the U.S. calendar will be heavier towards to the end of the week with readings on employment, import/export, inventories and consumer/retail sales. staff


The staff of have been covering news for financial advisors since 1998.