Gold Prices Rise Before Trump Speech

Cassie Bastien

2/24/2017 8:35:35 AM

Daily Gold & Silver Market Report – 02/24/2017

Investors are wary heading into the weekend, before President Donald Trump addresses the U.S. House and Senate Tuesday. Bloomberg Markets reporter Robert Brand said, “Global stocks retreated, erasing gains for the week as a glum set of European corporate earnings compounded investor nervousness before [Tuesday's speech].” Gold prices rose for a fourth-straight week following U.S. Treasury Secretary Steven Mnuchin's comments Thursday saying he expects low borrowing costs to persist, hurting the U.S. dollar. “Next week it will be three weeks since President Trump promised something ‘phenomenal’ with respect to tax reform and investors are starting to become a little restless,” CMC Markets Chief Market Analyst Michael Hewson said in a report. If Trump’s speech does not provide details, Hewson said, “the rally that we’ve seen in the past three months could become susceptible to some profit-taking.”

• Gold climbed 0.6 percent to $1,257.35 an ounce, heading for a fourth weekly gain.
• Silver rose 0.8 percent, headed for a ninth weekly increase, its longest run of gains since 2006.

Spot Price of Silver Up 1.2 percent and Poised for Weekly Gain

As the U.S. dollar corrected lower for a third-straight session, the spot price of Silver rose Friday, moving toward positive territory for the week. EconomicCalendar.com Financial Market Analyst Sam Bourgi said Silver is headed for a five-day gain close to 1.5 percent after being range-bound for the week. "Precious [Metals] are benefiting from risk-off exposure and a downward correction in the U.S. dollar, which fell on Friday for a third straight day against a basket of other currencies," Bourgi noted.

• According to Barchart, May Silver futures rose 21 cents, or 1.2 percent, to $18.40 per ounce at 7:47 a.m. (ET).
• The dollar index was last down 0.3 percent at 100.72.

Dollar Poised for Weekly Loss as Trump Rally Pauses

“World stocks have hit record highs, emerging markets have regained favor and the dollar has climbed to a 14-year peak in recent weeks on expectations U.S. President Donald Trump's economic agenda will stoke growth and inflation,” Reuters London Reporter Vikram Subhedar said. Newly appointed U.S. Treasury Secretary Steven Mnuchin took the edge off expectations, saying ‘any policy steps by the Trump administration would probably have only a limited impact this year,’ in his first televised interviews. "Mnuchin's comments were less belligerently reflationary than they could have been, in a dollar strength context, and that probably did much of the damage (to the dollar)," UBS Wealth Management Currency Strategist Geoffrey Yu said. Subhedar said, “Political concerns around elections in Europe have so far largely affected bond markets.”

• Gold hit its highest in more than three months on a weaker dollar and safe-haven demand.
• Oil prices fell after U.S. crude inventories rose for a seventh week.

At 10:56 A.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,258.00 Up $4.90
• Silver, $18.43 Up $0.20
• Platinum, $1,025.60 Up $13.70
• Palladium, $781.40 Up $5.60

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