GOLD PRICES EDGE LOWER

Cassie Bastien

1/20/2017 10:07:00 AM

Daily Gold & Silver Market Report – 01/20/2017

As the U.S. dollar retreated from recent highs, spot Gold prices found support below $1,200 per ounce Thursday, but buying support was limited ahead of President-elect Donald Trump’s speech Friday. Federal Reserve Chair Janet Yellen adopted a slightly less hawkish tone in her latest policy speech. EconomicCalendar.com’s Tim Clayton said, “Although she still pushed the case for a gradual increase in interest rates and warned that there were dangers in delaying interest rate increases for too long … she also warned over the risks of rising budget deficits over the longer term and the dollar was unable to gain fresh support with Gold holding above the $1,205 [per ounce] level.” Caution lingers ahead of Trump’s inauguration, curbing further selling interest on Gold with consolidation near $1,200 per ounce. Clayton says, “Position adjustment will be important late in the European session with Trump’s inauguration taking place just after the European close. A generally conciliatory approach would tend to undermine defensive Gold support and potentially push prices lower, although there will be the risk of choppy trading conditions.”

U.S. STOCKS RISE AS DOLLAR FLUCTUATES BEFORE TRUMP

BloombergMarkets reports the U.S. dollar and Treasuries reached their lowest level of the year ahead of Trump’s inauguration. Natasha Doff and Jeremy Herron report, “Investors are avoiding taking firm positions … as they await indications that the administration will follow through on pro-growth campaign promises. Trump is expected to act on promises to upend trade deals in Asia and North America, while efforts to boost government spending at home remain another top priority.” Among many others, Neil Mellor, a London-based Currency Strategist at Bank of New York Mellon Corp, said Friday is a big day. “We could get more clues about what Trump is planning today. If he ramps up the rhetoric the market will be concerned about building long dollar positions.”

BULL MARKET WILL KEEP GOING

Investors are on edge Friday morning ahead of the new Trump age that is about to dawn, wondering whether it’ll be as unpredictable as the past few months suggest. Interactive Investor’s Lee Wild said in a note, “Despite some selling, no one wants to call this rally over prematurely, and indexes remain near record highs. Even the pros don’t know which way this will go, near-term at least.” MarketWatch reporter Barbara Kollmeyer said, “No matter how investors feel, the market will go where it wants.” Chris Ciovacco, blogging for See It Market, says “History reminds us that the recent bullish breakouts from long-term stock-market consolidation patterns do not necessarily need to be coupled with widespread optimism for stocks to advance over the next several years.” According to Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices that from Trump’s election to Inauguration Day, the S&P 500 has gained 5.8 percent, compared to the 19.94 percent drop for Barack Obama in 2008/09.

At 11:07 A.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,205.60 Up $1.50
• Silver, $17.10 Up $0.04
• Platinum, $976.20 Up $20.80
• Palladium, $785.10 Up $33.00

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