At the time of this report, we see gold up ten dollars overnight stopping right at the next level of resistance at $1,219 in the February CME gold contract.
Physical gold demand at a steady pace in the Far East is helping the price build a base above the $1,200 dollar level.
Some equity advisors I spoke with this morning indicate that their clients are getting a little nervous about their investments as they see the Democrats doing whatever they can to derail President Trump’s first one hundred day agenda.
Senate Minority leader Chuck Schumer said over the weekend that Trump’s cabinet nominees have values that are inconsistent with those of the man who nominated them. Nonetheless the President plans to stay on track and ignore the rhetoric, signing an executive order removing the U.S. from the Trans-Pacific Partnership. He indicated he will start individual trade negotiations with countries in the Partnership on a one-on-one basis.
Some Wall Street gold traders I spoke with this morning have indicated that they are disappointed that gold has not broken thru the $1,220 level and that they will stop themselves out of their current long gold position at the first sign of any weakness in the price. If that’s the case, I guess we have seen the highs for the day already met. Silver demand in the Far East and in Europe is very quiet as investors ponder the future direction of the market.
Overall both Gold and Silver are range bound for the time being as expressed by my technical gurus this morning. Charts not revealing any patterns to talk about, so we wait to hear any news stories that can affect precious metal prices.
Have a wonderful Monday.
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