Daily Market Update

Gold Consolidates Above $1,300 After 1.2% Gain Last Week

via Marketwatch:

Gold futures settled above $1,300 an ounce on Friday, with prices for the yellow metal at their highest since June as the U.S. dollar pulled back and investors eyed geopolitical turmoil and global growth worries.

Rising gold prices reflect “political uncertainty” in the U.S., Eurozone, Venezuela and pockets of South America, as well as China-U.S. trade talks, said George Gero, managing director in RBC.

Gold for February delivery added $18.30, or 1.4%, to settle at $1,304.20 an ounce after trading as high as $1,305.80. The April contract notched its highest finish since June and climbed by 1.2% for the week, according to FactSet data.

March silver rose 39.9 cents, or 2.6%, to $15.699 an ounce—settling 2% higher for the week.

Gold Note

The strong gains seen in gold and silver last week and gold’s close above $1,300 per ounce are bullish technically. It suggests that gold has broken out of its recent range and could move higher in the coming days.

Possibly what will determine gold’s short term price outlook is how equity markets perform. If risk appetite continues and stocks make further gains, gold may see some selling again. However, if stocks resume their declines then gold will likely catch a safe haven bid again.

We have seen an increase in safe haven demand from UK and Irish clients in recent days. It is nothing major though and nothing compared to the increase in demand we saw after the Brexit vote, the Northern Rock bank run or indeed the global financial crisis in 2008.

We are seeing little or no selling and nearly all buying. Bullion buyers tend to be risk averse and motivated by wealth preservation and therefore focus on owning gold (and silver) for the long term.

 

News and Commentary

Parliament to Challenge May for Brexit Power in Crucial Votes (Bloomberg.com)

U.K. Military Stockpiles Food, Fuel, Ammo Ahead of Brexit: Sky (Bloomberg.com)

Gold firm near 7-month peak on U.S. rate pause hopes (Reuters.com)

Asia shares pare gains as focus turns to crucial Sino-U.S. trade talks (Reuters.com)

Trump doubts border security deal, another government shutdown looms (Reuters.com)

Oil falls on increased U.S. rig count, China industrial slowdown (Reuters.com)


Source: Bloomberg

Bitcoin Investors Are Running From Crypto To Invest In Gold This Year (CNBC.com)

Why This Billionaire Just Bought Gold for the First Time in His Life (GoldSeek.com)

U.S. is behind Bank of England’s freeze of Venezuela’s gold (Bloomberg.com)

How Should We Then Invest? (GoldSeek.com)

Tumbling Asian Exports Confirm Global Earnings Recession (ZeroHedge.com)

How the U.K. Parliament Is Trying to Seize Control of Brexit (Bloomberg.com)

Chemical elements which make up mobile phones placed on ‘endangered list’ (St-Andrews.Ac.UK)

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Gold Prices (LBMA PM)

25 Jan: USD 1,282.95, GBP 981.33 & EUR 1,132.08 per ounce
24 Jan: USD 1,279.75, GBP 981.70 & EUR 1,128.36 per ounce
23 Jan: USD 1,284.90, GBP 990.14 & EUR 1,131.74 per ounce
22 Jan: USD 1,284.75, GBP 994.14 & EUR 1,130.58 per ounce
21 Jan: USD 1,278.70, GBP 995.08 & EUR 1,124.11 per ounce
18 Jan: USD 1,285.05, GBP 993.34 & EUR 1,126.86 per ounce
17 Jan: USD 1,294.00, GBP 1,004.92 & EUR 1,135.87 per ounce

Silver Prices (LBMA)

25 Jan: USD 15.37, GBP 11.74 & EUR 13.55 per ounce
24 Jan: USD 15.30, GBP 11.75 & EUR 13.48 per ounce
23 Jan: USD 15.38, GBP 11.80 & EUR 13.54 per ounce
22 Jan: USD 15.26, GBP 11.84 & EUR 13.44 per ounce
21 Jan: USD 15.26, GBP 11.86 & EUR 13.42 per ounce
18 Jan: USD 15.47, GBP 11.96 & EUR 13.56 per ounce
17 Jan: USD 15.57, GBP 12.08 & EUR 13.66 per ounce

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Mark O'Byrne
Executive Director

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