Before the Bell
The USD is stronger, and Gold is holding so far. The IMF does not like Greece's chances. The DOJ will try to reinstate Trump's travel Ban today. And the President's most recent tweet from 7:11 AM.
Gold Holds
This will be day 2 if things play out as we think they might. With the bleeding edge of another EU crisis on the radar, the Dollar will have less effect on Gold. That so far can be evidenced in how it has held relative to the other Precious Metals. Yesterday the USD and Gold rallied. This gives an indication of buying being EU centered. That's not to say it cannot end ugly for Gold. Remember, almost every time Gold is used as a crisis 'safe haven', when that crisis is "averted" Gold takes it on the chin as the exit stampede is too great. Remember the Brexit aftermath. While we know the issues are merely delayed and the EU has issues that arent going away, that doesn't stop hot money from being lemming-like.
Gold for April delivery is trading $1232.50 as of this writing. Palladium is weakest after having the stronger day yesterday. Spot Gold is lower. Technically speaking Peter Hug had this to say:
"Consolidation is not necessarily a bad thing, but gold needs to hold the $1,220 area to retain a short-term bullish bias"- Peter Hug
interactive chart HERE
The USD Is Strong
The greenback is heading for its biggest advance in three weeks, with the Bloomberg Dollar Spot Index gaining 0.8 percent by 5:15 a.m. ET as the currency strengthened against all major peers. The pound was among the biggest losers, falling to a two-week low as Brexit and economic growth concerns return to put pressure on sterling.
Tallest Pygmy affect may be in order here. Which is likely also why Gold is again starting to behave well in spite of a stronger USD
While political uncertainty was mostly reflected yesterday in the France/German Bond spreads, today the EURO is feeling the pain more.
Markets so Far
Trump wants to Unban the Ban
An appellate court in San Francisco will hear arguments from Justice Department lawyers today demanding the reinstatement of a travel ban on nationals from seven Muslim-majority countries. Google parent company Alphabet Inc. is organizing the funding of a legal brief opposing the president's executive order in what has become the first major policy challenge for the new administration. President Donald Trump continues to defend the ban on Twitter in his familiar style. (BBG)
I don't know Putin, have no deals in Russia, and the haters are going crazy - yet Obama can make a deal with Iran, #1 in terror, no problem!
— Donald J. Trump (@realDonaldTrump) February 7, 2017
Good Luck
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