GOLD UP ON WEAKER DOLLAR, PALLADIUM AND PLATINUM PRICE SHOW GROWTH

Cassie Bastien

1/30/2017 10:00:00 AM

Daily Gold & Silver Market Report – 01/30/2017

Propped up by a weaker dollar and sluggish economic data from the U.S., Gold prices edged up today while the Lunar New Year holiday in Asia was seen limiting gains. Analysts have sharply scaled back expectations for Gold prices this year after the yellow metal's weak fourth-quarter performance, with the prospect of further U.S. interest rate hikes and a bumper year for stocks weighing on interest in the metal. Arpan Varghese from Reuters said, “Analysts have hiked their 2017 Palladium price forecasts on expectations that reflationary policies in the United States will boost growth, and consequently car sales, this year, even as forecasts for other Precious Metals such as Platinum are cut.”

SILVER RALLY APPEARS TO BE LOSING MOMENTUM

With the industrial metal recovering from the low of late December at $15.73 per ounce, to touch a high of $17.36 per ounce in mid-January, Silver prices are showing to be somewhat lagging behind. Much of this move has been driven by weakness in the US dollar with the gray metal duly topping out at this level and moving into a consolidation phase over the last two weeks. Anna Coulling with Investing.com says that this is no surprise, “and suggests that this may once again prove to be an obstinate resistance region for any further advance.” Coulling said, “…we are approaching the volume point of control with solid resistance now ahead, so as before, this now appears to be a rally about to stall and run out of steam, and moving into a congestion phase around the VPOC.

DOW POISED TO DIP BELOW 20K

MarketWatch reporter Barbara Kollmeyer said that stock futures pulled back early this morning, “indicating that the Dow Jones Industrial Average’s hold on the 20,000 level could be put to a test as investors prepare for a heavy week of data, a Fed meeting and plenty of important company results.” Furthermore, investors are weighing up whether the latest policy decisions by President Trump, chiefly a travel ban and the public outcry that ensued over the weekend, will sow doubts about his overall economic plans. “While we continue to think a Trump victory likely means higher U.S. growth in 2017 than we would have expected three or six months ago, we still think volatility will be a feature of the year,” wrote Deutsche Bank Analysts Jim Reid and Craig Nichol, in a note to clients today.

At 11:00 A.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,200.20 Up $8.80
• Silver, $17.26 Up $0.07
• Platinum, $981.30 Down $1.00
• Palladium, $734.70 Down $5.40

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