Gold On Track To Close Lower For The Fourth Consecutive Week
Over the last three consecutive weeks, gold has closed on Friday below the opening price on Monday. Even though there is still one more trading day this week, it seems probable that tomorrow’s closing price will be below Monday’s opening price.
After trading to a double top at $1360 during the week of February 12, market forces and investor sentiment have resulted in lower pricing on the weekly charts. The most substantial single week decline occurred during the week of February 19, resulting in a $20 price decline that week. The following three weeks would all contain the same characteristic of an overall price decline on the week.
In tandem with gold’s four-week price decline has been moderate U.S. dollar strength which could result in four consecutive weeks of higher value if the dollar closes at its current price point or higher.
After trading to a critical low and support level at 88.58 five weeks ago, the dollar has been bid up. It is now on track to close higher for the last four consecutive weeks.
Today traders and market sentiment continue to bid up U.S. dollar value, resulting in a daily gain of +0.47% at 90.105. The higher dollar continues to dominate as a major contributor to precious metal weakness. Gold futures are currently trading down $9.20 at $1,316.40, which is a net loss of 7/10 of a percent today.
As of 4:00 PM Eastern standard time, spot gold is currently fixed at $1,316.10, down $8.10 on the day. According to the Kitco Gold Index, today’s eight-dollar decline contains roughly five parts of a strong dollar (- $5.20), and three parts (- $2.90) selling pressure.
Yesterday President Donald Trump announced that he has selected Larry Kudlow to head the next White House National Economic Council, replacing Gary Cohn who recently resigned from this post.
White House Press Secretary Sarah Sanders confirmed Trump’s appointment in a statement that said, "Larry Kudlow was offered, and accepted, the position of assistant to the President for Economic Policy and Director of the National Economic Council. We will work to have an orderly transition and will keep everyone posted on the timing of him officially assuming the role."
The new chief economic advisor was quoted yesterday as saying that President Trump favors a strong U.S. dollar, and as such we can expect the dollar to continue to gain value in the short term.
For those who would like more information, simply use this link.
Wishing you as always, good trading,
By Gary WagnerContributing tokitco.com
Follow @garyswagner
gary@thegoldforecast.comwww.thegoldforecast.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.