Gold and Silver Rebound After Trump’s Comment

Cassie Bastien

4/13/2017 12:35:33 PM

Daily Gold & Silver Market Report – 04/13/2017

Precious Metal prices rallied early Thursday morning after President Donald Trump stated the U.S. dollar has been trading at “too strong” of a level, MarketWatch Reporters Myra P. Saefong and Carla Mozee said. “June Gold advanced 0.6 percent, to $1,285.20 an ounce, with prices holding ground at their highest levels since early November. Also, Silver prices for May delivery climbed 0.9 percent, to $18.47 an ounce, poised to settle at its highest level since early March.” Those prices continued to climb after Trump told The Wall Street Journal he would prefer the Federal Reserve to keep interest rates low, saying, “I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me.” Prices for dollar-denominated commodities such as Precious Metals tend to rise when the dollar weakens, which makes them cheaper for holders of other currencies. Gold Newsletter Editor Brien Lundin said, “Gold had been trading higher based upon geopolitical tensions,” including between the U.S. and Russia and North Korea, but “what Gold really needed to keep its rally going was some sort of a fundamental monetary driver. ... Over the longer term, the path higher for Gold has been somewhat cleared by Trump’s acknowledgment of the dovish monetary policies they will pursue, and the metal seems likely to build upon its gains in the weeks ahead.” Ross Norman, chief executive officer of Sharps Pixley in London, said “Conclusively breaching this trendline [going back to Gold's all-time high on Sept. 22,2001] is to say we are very much back in a bull run.” 

• Technical analysts said on Tuesday spot Gold closed above its 200-day moving average of $1,260.49 per ounce, pointing to a developing uplift.
• The dollar fell to a five-month low againt the yen and the ICE dollar declined to a roughly two-week low after Trump’s comment (MarketWatch).

Markets Nervous Over French Presidential Election

Investors remain anxious about French presidential front-runner Marine Le Pen, leader of the far-right National Front, who “has promised a referendum on whether to quit the [European Union] and ditch the euro,” Reuters Reporters Adrian Croft and Elizabeth Pineau said. Financial markets are worried about putting France's EU membership to a vote. Reuters noted, “The latest Ifop-Fiducial poll on Wednesday showed Le Pen winning 23.5 percent in the April 23 first round, one point ahead of centrist Emmanuel Macron.” Ifop is an international polling and market research firm that is regarded as an authority in opinion polls. Investors turned most of their attention to safe-haven assets such as Gold and Silver or U.S. Treasuries, due to the French election and U.S. relations with Syria and North Korea. Nomura currency strategist Yujiro Goto in London said, “Risk sentiment is not strong at the moment because of tensions in North Korea and also risk of a ... rising Melenchon.” Communist-backed French presidential candidate Jean-Luc Melenchon surged in the polls after two strong debate showings.

At 1:36 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,288.60 Up $10.00
• Silver, $18.59 Up $0.20
• Platinum, $975.70 Up $7.30
• Palladium, $797.70 Down $0.60

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