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Gold Forecaster #570: 2017 continues with higher gold in all currencies!

In the second trading week of 2017 we had another a good week for gold. It finished the week at $1,198.30 up $25 over last week.

During last week, the dollar weakened  to over $1.06 against the euro and the dollar index dropped to 101 at one point, with the media attributing that to Trump’s failure to describe his financial policies.

What appears to be happening is that the honeymoon with the Trump Presidency is over, before it began. But, as we described yesterday, such temporary news in the U.S. did not cause the buyers of gold to rush out and buy in the U.S. Most of the buying occurred in China yesterday, with no movement whatsoever in the U.S. based gold ETFs. He is more than a peppery President he is shaking up the world with his ‘tweeting’.

The rise in the gold price in dollars was in fact the fall of the dollar reflected in a higher dollar gold price, together with Chinese demand as reflected in the Yuan gold prices

On Monday of last week another very large sale of physical gold took place of 8.6 tonnes in New York and is no doubt finding its way to China. The fact that the gold price ignGF570red this sale and took prices higher, as the dollar weakened, is significant. As you know, we are currently seeing pricing power sitting in Shanghai. New York’s price reaction to the large sale of gold, confirms, again, that it does.

During the week ETF sales halted completely but we saw two small purchases into the Gold Trust. Then at the beginning of this week we saw a nearly 3 tonne purchase into the SPDR gold ETF!

We had previously stated that, “Substantial sales of gold on a daily basis are needed for New York to control the gold price”

It does appear that the developed world’s gold world media has not yet noticed these changes. We feel that they are the most important structural changes the gold world has seen since 1971. Please note, you’re reading it here first!

If we are right and the pricing power now resides in Shanghai, we have to completely adjust our gold price reasoning.

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Gold Forecaster #569: 2017 starts with prices moving higher in all currencies

Dear Gold Forecaster Subscriber,

Please find the latest weekly issue attached in Adobe PDF format.

2017 starts with prices moving higher in all currencies.

Weekly Gold Review
In the first trading week of 2017 we saw a good week for gold. It finished the week at $1,173 having touched $1,185 at one point.

The bottom in the gold price was made at around $1,130 and prices are steadily moving higher.

But the big news in this first week of 2017 is the change in structure in the gold market.
[In the issue we feature an article on the Shanghai gold exchange which is now taking the lead in gold pricing.]

Another big feature of the week has been the return of buyers to the U.S.-based gold ETFs. Albeit a small, less than a tonne, set of purchases, they are there. This was after the previous week had seen big sales from these funds, which had no impact on the gold price whatsoever.

While traders retain very large short market positions in gold on COMEX the evidence that attitudes to gold are changing in the U.S. and internationally.

But before we go too bullish on the gold price itself, the Technical position sees huge overhead resistance from $1,210 to $1,310. While this implies stale bulls will sell gold when this resistance is hit, we feel that the global political and monetary scene may well remove the word ‘stale’ from these bulls. Indeed, the Technical picture may well find itself following the gold price and not leading it.

Please open the attached newsletter for our full weekly Gold Forecaster,
Julian Phillips and Peter Spina

 

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