Saturday, January 27, 2018

Gold ends the week up 1.5% while the dollar fell nearly the same at 1.6%

Despite a few strong bumps in the road for the gold price during last week, the precious metal ended up 1.5% to close out Friday at $1350.32.  And perhaps in validation that gold is moving almost perfectly in opposition to the dollar, the reserve currency ended the week down 1.6%.

Gold:


Dollar Index:


Gold fell sharply on Friday, but held on to a weekly gain, on the heels of conflicting comments from the Trump administration on dollar policy. 
Prices began to fall in electronic trading on Thursday after CNBC reported that President Donald Trump said he wanted to see a stronger dollar and expressed optimism that the battered U.S. currency would strengthen. On Friday, February goldGCG8, -1.04%  lost $10.80, or 0.8%, to settle at $1,352.10 an ounce. 
Gold’s losses came in contrast to Thursday’s regular session, when prices finished $6.60 higher at $1,362.90, the highest settlement for a most-active futures contract since Aug. 4, 2016. Gold was driven higher by the greenback, which has been tumbling in the wake of Wednesday’s comments from Treasury Secretary Steven Mnuchin who said a “weak dollar was good for trade.” - Marketwatch

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