GOLD FALLS AS EQUITIES RALLY OFFSET U.S. POLICY CONCERNS

Cassie Bastien

1/26/2017 1:46:00 PM

Daily Gold & Silver Market Report – 01/26/2017

Gold prices were declining Thursday morning as “a rally in U.S. equities offset support from uncertainty over the new U.S. administration’s policies and a weaker [U.S.] dollar,” Nasdaq reports. “Spot Gold prices were down 0.34 percent at $1,196.12 per ounce. On Wednesday, they hit their lowest yesterday since Jan. 13 at $1,192.74.” INTL FCStone Analyst Edward Meir said, “The bullish impact of a weaker dollar was more than offset by soaring U.S. equity market where we saw the Dow [Jones Industrial Average] take out the 20,000 mark for the first time. We suspect that Gold could come under further pressure again on Thursday as the follow-through from the U.S. stock rally reverberates through into other global markets.” Fueled by worries over President Donald Trump's policies, spot Gold hit two-month highs this week. The yellow metal has rallied nearly 7 percent since mid-December. “However, physical Gold demand in India was weak due to higher prices, while Chinese demand ebbed ahead of the Lunar New Year holiday,” traders noted.

SILVER ETFs DROP AMID BROAD PRECIOUS METALS PULLBACK

Silver prices dropped nearly 1 percent Wednesday afternoon, following Gold’s lead, on all-time highs in equities markets and renewed optimism regarding economic growth. Investing.com said, “Precious Metals sold off in the face of the big stock rally, in which the Dow breached the ‘big round number’ 20,000 level for the first time in history. … Silver’s year-to-date gains are still firmly intact however, with the gray metal still up well over 6 percent since the start of 2016. … SLV has gained 6.35 percent [year-to-date], versus a 2.62 percent rise in the benchmark S&P 500 index during the same period.

DOW AT 20K, OTHER GAUGES ALSO ROARING

MarketWatch Markets Writer Victor Reklaitis says traders are still excited about the Dow hitting the 20,000 mark that it is looking like more gains at Thursday’s open. “I am glad the 20K watch is (mostly) over,” Howard Silverblatt from S&P Dow Jones Indices writes. “It would be comforting to get back to earnings season and leave Washington to itself — but I wouldn’t count on it.” J. Lyons Fund Management’s Dana Lyons notes, “The important thing is that another broad market index, [the NYSE Composite] with thousands of constituents, has broken out to new all-time highs following 20 months of consolidation.”

At 1:46 P.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,191.60 Down $9.00
• Silver, $16.88 Down $0.16
• Platinum, $981.00 Down $0.30
• Palladium, $726.10 Down $11.00

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