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Gold Prices Pressured By Dollar Rally

January 11th, 2017 by

Gold prices are lower this morning in New York after touching a six-week high in early trading. Some activity can also be attributed to profit-taking, as the precious metals sector has started 2017 with a roar.

Spot gold swung from highs above $1,190 an ounce just before the New York open, to the $1.183 range for a loss of $4.00. Spot silver had added 1.3% overnight on top the 1.3% gains it recorded at Tuesday’s close. However, it followed gold down at the New York open.

Spot platinum flirted with the $990.00 level overnight, before giving up gains to fall modestly lower in the US. Palladium, which has been the best-performing commodity in 2017 so far, is down nearly 2% from Tuesday’s close.

Precious Metals Roar Out of the Gate

As of Tuesday’s close, precious metals are outperforming most of the commodities sector.

gold-victory-stack

Palladium is the #1 exchange-traded commodity in the world in 2017, gaining $80.80 since January 3rd for a year-to-date performance of +11.83%.

Platinum is right behind its brother PGM, closing yesterday $75.50 higher for the year. This gives the rare white metal a 8.34% YTD gain, and puts it in second place on the global commodities chart.

Just a bit further down, silver has also been tearing up the streets, coming in at #4 on the global commodities chart. It is showing a 5.32% gain so far this year.

Gold is up 3.05%, showing a $35.50 year-to-date gain. This is enough for it to notch the 13th spot among the 56 commodities futures followed at Barchart.com

This action may be a re-positioning ahead of Donald Trump’s first press conference since July 27. Precious metals have seen substantial gains to begin 2017, so profit-taking is very likely to be weighing on decisions by gold traders.

Outside Markets

Crude oil was just slightly above unchanged on Wednesday following losses to begin the week. WTI crude fell to a one-month low on Tuesday and is trading below $51 per barrel.

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In terms of foreign exchange, the British pound sterling has continued its collapse. The pound traded just barely above the $1.20 mark against the dollar. However, the weaker currency has helped stocks in the U.K. The leading FTSE 100 index is on a streak of nine consecutive trading sessions with all-time high closing numbers.

Meanwhile, instability and terror in Turkey have made the Turkish lira the leading contender for the “worlds worst currency” so far this year. The lira hit a new record low today as forex traders seem to believe the country’s central bank lacks the will to use interest rate hikes to stem the decline.

 

The opinions and forecasts herein are provided solely for informational purposes, and should not be used or construed as an offer, solicitation, or recommendation to buy or sell any product.