Gold surged to a new all-time record high today, with the most active April contract currently fixed at $2958.40, or 1.02% after factoring in net gain of $29.70. Dollar weakness was by far the largest contributor to gains in gold. The dollar index is currently fixed at 106.95, after factoring in today’s decline of 0.84%. Because gold is paired against the dollar when we subtract percentage gain in the dollar (0.84%) from today’s gain in gold (1.02%) traders accounted for only 0.18% of today’s record close.
Although it was dollar weakness that was the primary force moving gold higher, dollar weakness was the direct result of two factors; concern about tariffs, and January’s Producer Price Index report. Concern continues to grow following Trump’s, announcement to impose reciprocal tariffs on countries taxing US imports.
Today the government released the PPI index for January, revealing that producer prices increased 0.4% in January. Yesterday, the U.S. Bureau of Labor Statistics’ released Januarys Consumer Price Index (CPI) report. That report revealed that inflation increased by 0.5%, surpassing both December’s 0.4% rise and the
consensus forecast of 0.3%.
According to Reuters News, “U.S. producer prices increased solidly in January, offering more evidence inflation was picking up again and strengthening financial market views that the Federal Reserve would not be cutting interest rates before the second half of the year.”
Technical Analysis Reveals Rare Pattern
A remarkable technical pattern has emerged in gold’s price action: seven consecutive weekly gains, represented by bullish (green) candlesticks beginning December 30. This rare occurrence has only one historical precedent in recent gold trading history, observed during the summer of 2011. […]
— Read More: www.kitco.com
