Gold Price Holds Near 3 1/2 Month High

Cassie Bastien

2/27/2017 8:29:12 AM

Daily Gold & Silver Market Report – 02/27/2017

Pratima Desai with Reuters said Gold prices were softer Monday, “near to the 3 1/2 month highs hit last week as investors waited for U.S. President Donald Trump to outline plans for tax cuts, infrastructure spending, and levies on imports and foreign policy.” Danske Bank analyst Jens Pederson said what Trump reveals in Tuesday's address to Congress could be very important for not only Gold, but all Precious Metals, saying, “For example, if he announces significant fiscal easing, that would raise inflation expectations and lead investors into Gold.” Desai said nervousness ahead of elections in the Netherlands, France and Germany should buoy Gold spot prices in 2017 but U.S. interest rates are also important. Desai notes, “Bets on higher prices can be seen in data from the [Commodity Futures Trading Commission], showing hedge funds and money managers holding larger net long positions in COMEX Gold, reaching the highest in nearly three months during the week to Feb. 21.”

• Gold faces resistance at $1,260 per oz, near the 200-day moving average
• Speculators raise Gold longs to highest in nearly three months
• Better prospects for Palladium than for Platinum (Reuters)

Silver Prices Steady Ahead of Data Deluge

As investors brace for several market-moving events this week, Silver spot prices steadied near 3 1/2 month highs Monday, reporter Sam Bourgi with Economic Calendar said. Investors turned their attention to economic data and Federal Reserve speakers expected throughout the week, helping the U.S. dollar remain steady. This week, the U.S. Commerce Department will release revised fourth-quarter GDP data, the January personal income and outlays report, and core personal consumption expenditure (PCE) estimates. In addition, the Institute for Supply Management will release PMI reports covering U.S. manufacturing both Wednesday and Friday. Fed Chair Janet Yellen will also speak on the economic outlook at the Executives Club of Chicago on Friday at 1 p.m. (ET).

• May Silver futures were trading at $18.41 per oz at 7:40 a.m. (ET).
• The gray metal advanced 1.7 percent last week and is up 5 percent since the start of February. (Economic Calendar)

Trump Talk on Tuesday to End Stock Rally

Portfolio Manager Cam Hui with the Humble Student of the Markets blog warns President Donald Trump’s address to Congress Tuesday could bring the current stretch of stock market wins to an abrupt halt. “The stock market has rallied substantially in anticipation of Trump’s proposal of tax cuts, tax holiday for offshore cash repatriation and deregulation,” Hui explains. “As Trump’s tax reform proposals become clearer, it is becoming evident that there are two likely outcomes. Either Wall Street will have to swallow the bitter pill of the protectionist measures of a Border Adjustment Tax (BAT), or they will get delayed and bogged down in Congress. ... [Trump’s speech will likely] raise uncertainty about potential changes in fiscal, regulatory, and other government policies,” waking a slumbering stock market. MarketWatch Social Media Editor Shawn Langlois said, “Apparently, Donald Trump isn’t jangling the nerves of investors quite like he is riling up his detractors. Not yet, anyway.”

At 10:34 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,261.40Up $1.50
• Silver, $18.51 Up $0.05
• Platinum, $1,043.80 Up $15.10
• Palladium, $789.00 Up $14.80

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