Friday, January 12, 2018

Gold price hits $1333 in overnight trading before falling back as dollar sees another big move lower towards 90 handle

Just before early New York futures began to open, the gold price had risen nearly 1% in overnight Asian trading to its highest level in several months.  Then shortly after hitting $1333 on the ticker, it has retreated back to $1325 despite the fact that the dollar has fallen another 40 bps following to reports out this morning of higher price inflation, and retail sales missing for the Christmas holiday season.

Headline SPI rose just 0.1% MoM (as expected) but notable slower than the 0.4% MoM rise in November. 
The index for all items less food and energy increased 0.3 percent in December, its largest increase since January 2017. 
The recent (silver lining) trend in lower shelter cost growth ended with a modest rise MoM and YoY in both Shelter and Rent inflation... - Zerohedge

Since December 13 when the Fed raised interest rates again, the gold price has risen nearly $100 as commodity and price inflation appears to be on the rise, and the dollar is losing any steam it may have had prior to this year.

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