Tuesday, January 2, 2018

Gold begins 2018 with a strong move as the dollar falls below 92 on the index for first time in three months

As the first trading day of 2018 gets underway, one major trend that had started when the Fed announced a rate hike back on Dec. 13 appears to be continuing.  And this trend is the combination of higher gold prices and a falling dollar.

Gold ended 2017 by breaching the $1300 level after several attempts in November to break this psychological barrier.  And here on Jan. 2 gold has moved $10 higher from its close on Dec. 29 to $1314.


Meanwhile, the dollar has fallen nearly 300 bps since Dec. 11 when the Fed began its two day meeting of the FOMC.  And in fact over the three weeks immediately following the Dec. 13 rate hike, the U.S. currency has dropped from a 94 handle to its current level of 91.91.


Our predictions that 2018 would begin to see ever growing commodity and price inflation appears to be already well on track, which is why many analysts believe a push in the gold price to $1400 could come quite sharply and swiftly,

1 comments:

That means our day is coming.

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