Vix at 1-Year Low, Gold Rally Continues

Market Overview - The Russell 2000 index experienced a rally of more than 1% recently, indicating positive market sentiment [1] - The market is currently in a pause mode, awaiting the release of significant economic data throughout the day [2] - Small-cap stocks are outperforming, suggesting a potential shift in market dynamics [3] Economic Indicators - Key economic data points to watch include GDP, durable goods orders, and consumer confidence, with consumer confidence expected to have a notable impact on consumer discretionary and staples stocks [6][7][8] - The GDP data is anticipated to show a potential downward adjustment, influenced by data center spending, which constitutes around 70% of GDP [6][7] Metals Market - Gold has reached its 50th record high this year, while silver is also experiencing significant upward movement, with speculation about crossing the $70 per ounce mark [9][10] - Strong buying interest in silver futures indicates a foundation for continued price increases, while gold is expected to potentially reach $4700 [10][11] - The metals market is influenced by various factors, including monetary policy and currency devaluation, which serve as tailwinds for precious metals [12] Copper Market - Copper is facing a structural deficit, with mining companies revising production levels downward for 2026, contributing to price support [14][15] - The anticipated global AI build-out may also provide a rebound trade for copper, further supporting its price [16] Novo Nordisk - Novo Nordisk shares rose approximately 8% in premarket trading following FDA approval of the Wegovy pill, which could revolutionize the weight loss drug market [18][19] - Despite this positive news, Novo's stock is still down about 74% year-to-date, indicating potential for a rotation trade as investors seek value in the pharmaceutical sector [20][21] - In contrast, Eli Lilly's shares have increased nearly 40% year-to-date but are under pressure due to the competitive landscape following Novo's announcement [22]