Silver Price Uptrend Continues To Strengthen

Cassie Bastien

2/13/2017 10:03:00 AM

Daily Gold & Silver Market Report – 02/13/2017

Bruce Powers, Commodities reporter with Investing.com, said Silver prices “[have] been in a rising trend channel for the past seven weeks, ever since hitting a bottom at 15.64 [per ounce] in December. As of last week’s high, Silver was up 15.1 percent off that December low.” Further, Powers suggests “[Silver’s] bottom completed a higher swing low relative to the seven-year low of 13.65 [per ounce] reached in December 2015.  Therefore, it’s another sign that the prior long-term downtrend is turning into an uptrend and that it could keep advancing for some time.”

Year of the Rooster is Also Year of Gold

· Forecast notes the international gold price could potentially climb to $1,600 per ounce in the year.

· On the first trading day after the Lunar New Year, Hong Kong's Gold market rose 0.9 percent. (China Daily)

Chinese Gold and Silver Exchange Society President Haywood Cheung said in an interview with the China Daily, “This year, which is the Year of the Rooster in the Chinese lunar calendar, will also be the year of Gold.” Hong Kong reporter Duan Ting noted that Cheung was so confident in Gold due to the turbulent global economic environment, which he believes will create a bull market for the yellow metal. Ting said, “Investors are advised to allocate 20 to 30 percent of their assets to the Gold market to hedge risks including the depreciation of major currencies, the uncertainty over U.S. President Donald Trump's China policy and the sluggish economic situation in Europe.”

The ‘Big Change’ in the Market You May Have Missed

Since President Donald Trump's election in November, the correlation of the average S&P 500 sector to the overall S&P 500 has fallen dramatically. In other words, Alex Rosenberg with CNBC said, “different groups of stocks are following their own separate tunes to an extent that they haven't for years.” Convergex Chief Market Strategist Nicholas Colas said Friday on CNBC's “Trading Nation”, “For the entire time from the financial crisis through the election last year, assets in the U.S. market all traded largely the same way. Now, sectors are moving a lot more based on their own fundamentals, and it's really the first time since 2009 since we've seen it.” Rosenberg notes that one possible explanation is Trump’s potential economic policies. For example, he explains, “a greater tax on imported goods would be good news for U.S. manufacturers that compete with foreign companies, but trouble for retailers that import much of their inventory from abroad.” Miller Tabak Equity Strategist Matt Maley said, “People always think that you've got to have the hot guy with the hot stocks, but the really good long-term investor is someone who also avoids the bad ones, and there's more of them out there than there have been in the past.”

At 11:03 A.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,225.30 Down $11.70
• Silver, $17.95 Down $0.08
• Platinum, $1,002.20 Down $8.50
• Palladium, $782.80 Down $1.80

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