Stronger dollar dents gold price

 Gold Today –New York closed at $1,239.00 on the 20th February after closing at $1,235.60 on the 17th February. London opened at $1,233.00 today.

 Overall the dollar was stronger against global currencies early today. Before London’s opening:

         The $: € was stronger at $1.0558: €1 from $1.0619: €1 on yesterday.

         The Dollar index was stronger at 101.37 from 100.87 on yesterday. 

         The Yen was weaker at 113.56:$1 from yesterday’s 113.17 against the dollar. 

         The Yuan was weaker at 6.8866: $1, from 6.8783: $1, yesterday. 

         The Pound Sterling was weaker at $1.2423: £1 from yesterday’s $1.2462: £1.

Yuan Gold Fix
Trade Date Contract Benchmark Price AM 1 gm Benchmark Price PM 1 gm
      2017    2    21

     2017    2    20

      2017    2    17

SHAU

SHAU

SHAU

/

274.98

275.81

/

275.04

275.89

$ equivalent 1oz @  $1: 6.8866

      $1: 6.8783

$1: 6.8654

  /

$1,243.45

$1,248.64

/

$1,243.72

$1,249.91

Please note that the Shanghai Fixes are for 1 gm of gold. From the Middle East eastward metric measurements are used against 0.9999 quality gold. [Please note that the 0.5% difference in price can be accounted for by the higher quality of Shanghai’s gold on which their gold price is based over London’s ‘good delivery’ standard of 0.995.]

 LBMA price setting:  This morning’s LBMA gold price was set today at $1,228.70 down from yesterday’s $1,235.35.  

The gold price in the euro was set higher at €1,166.30 after yesterday’s €1,163.12.

Ahead of the opening of New York the gold price was trading at $1,231.65 and in the euro at €1,169.21.  At the same time, the silver price was trading at $17.92. 

Silver Today –Silver closed at $18.03 at New York’s close yesterday against $18.00 on the 17th February. Silver is hitting overhead resistance, but if it can rise 50 cents it could become extremely vigorous.

Price Drivers

Today’s action was dollar dominated with the gold price in dollars falling and the euro price rising.  With no buying or selling of U.S. based gold ETF shares the New York gold price had little reason to rise but it did.

In London the gold price fell back as the dollar held higher ground. But the gold price apart from currencies, is standing still and, once again, simply reflecting exchange rate moves. Nevertheless, the fundamentals for gold are extremely strong.

It appears to be that the gold price is in “the quiet before the storm”.  Just what will trigger it is not necessarily a dramatic event, but an event that occurs when demand and supply are in balance. That should be soon!

In India, the forecast for there to be enough new currency to replace the old, now illegal tender, by May appears to be becoming accurate. The demand from India for gold is not yet feeding through to London in the volumes expected, yet.

Gold ETFs – Yesterday was a holiday in the USA vand thus saw no sales or purchases from or into the SPDR gold ETF or the Gold Trust.  Their respective holdings are now at 841.169 tonnes and 201.38 tonnes. 

 Julian D.W. Phillips 

 GoldForecaster.com | SilverForecaster.com | StockBridge Management Alliance 

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