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Very quiet opening in our markets on Monday due to the Chinese Lunar New Year. Their markets were closed thru Thursday. Gold nonetheless bid up in Europe, as investors there see geopolitical factors that could influence the price of gold going forward. The controversy over the U.S. travel ban imposed on Friday is driving concerns that could lead to greater precious metals interest.
One hundred seventy-eight thousand ounces were put into the Gold ETF on Friday possibly starting to trend higher once again giving the price of gold a boost. Silver also joined the plus ranks adding almost 750,000 oz., which is a very small addition to the ETF funds currently holding 645 million oz.
Gold rose over $1,210 on comments from President Trump’s administration on the “grossly undervalued” Euro.
Wednesday morning found gold in negative territory as the dollar returned to the plus side along with treasury yields. That afternoon, the Fed left interest rates unchanged, so no impact was felt in precious metals.
Gold rose, especially in Europe, on news that the Greece is back in the headlines again, looking for another bailout.
The morning kicked off a stronger dollar and higher 10-year bond yields that kept the price of gold locked in a trading range. The dollar index back over the 100 level this morning, it's keeping gold from rallying through the two key resistance levels in the February contract that were broken through yesterday at $1,220 and $1,226.
Then a stronger than expected U.S. jobs report failed to impact gold, as it is maintaining its gains from Thursday as of this report.
Meanwhile, inflows in the Gold ETFs last couple of days seem to be fund-related. None of the financial advisors I spoke with this morning indicated that there was any retail interest in investing in ETFs at this time.
Author Name: Dillon Gage
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