Precious Metals In Review: Week of 10/27/2017

Precious Metals Overview for Week Ending 10/27/2017

Gold got a bit of a bump up this morning to lift an otherwise lackluster week.

Metal prices began the week under pressure after Japan saw a  strong selling of all four metals on Sunday night.  The actions were prompted by a rally of the Nikkei.  Japan’s stock market jumped 239 points after Prime Minister Shinzo Abe’s snap election victory.

At mid-week, we found the U.S. Ten-Year Treasury Yield hitting a seven-month high of 2.46 percent. Nonetheless, no one has pulled the rug out from under the Gold price. Still behind the curtain is North Korea and that situation has little chance of going away anytime soon.

Wall Street corporate earnings reported so far this week continue to excite the equity investors with more strong results expected in the next couple of days.

However, I do find it very interesting that with the historic rallies in the Dow, S&P and Nasdaq, the price of Gold hasn’t headed for the exits. Matter of fact, the CME reported that in September, the volume in Gold year over year is up 88 percent, with an average future trading volume at 360,000 contracts per day. One must say that is extremely impressive. Silver volumes are also up year over year in September at 40 percent, not bad at all.

Earlier this morning, gold was feeling the pressure of the strengthening U.S. Dollar, as it continued to climb to its highest level in over three months. Plus, the U.S. economy grew faster than expected in the third quarter, increasing to three percent, beating expectations and taking a little shine off the yellow metal.

And if the proposed tax cut comes through, some predict 4 percent growth is not out of the question. It seems all markets are expecting tax cut to happen. If it fails, I expect the price of Gold to rally significantly off the news.

At mid-morning Central time, Gold bumped up $4 an ounce as the news that Catalonia had voted for independence from Spain inspired safe-haven investors.