Overnight Summary:
Trump vows to scrap trade accords; dollar weakens. Gold gained almost every day this year; ETF buying resumes. Russia is now exporting more oil to China than Saudi Arabia is exporting. DRAGHI says there is widespread instability in Italy and the ECB. Meanwhile Germany is doing fine, and on target for its inflationary goals.
Gold touched a session high of $1,219.25 an ounce, a level not seen since November 22. At 6:51AM ET. The impulsive buying seems to be out of the EU right now. - Soren K.
Markets Today
More Non-Inflation
Gold- Bearish Candle Dodged?
Gold Interactive chart here
Silver- Looks to lag in rally, until it doesn't
Silver Interactive chart here
Gero's AM Notes
- Gold continues to be great performer this year-up over 6% in the first month/ first quarter
- Open Interest keeps adding now 4815959, up from 404029 on 12/28.
- Copper 258813,helped by car sales, housing, expected stimulus everywhere,
- Silver 175369 followed gold and
- Options expire 1/26 due to short week which may bring volatility as options in the money become futures contracts with margin.
- Weaker dollar caused by many worries
- Political: Brexit, Euro elections in France and Germany,
- Trade/ Currency: currency woes India,Venezuela, Turkey etc.
All this means asset allocators and others have finally noticed gold again after they fled ETF and Futures last year to go to better performing stocks. [And President Trump's inaugural gave them no reason to think his rhetoric was to be ignored- SK]
A.George Gero
Managing Director
RBC Wealth Management
Read more by Soren K.Group
