Wednesday, 11 January 2017 15:46

Gold is Sensitive to the Strength of US Dollar

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Gold hits $1197.5 per oz to a 6-week high today after US president-elect Donald Trump’s first press conference. The lack of new economic details on US economic and fiscal policy helped support the bullion market significantly. On the other hand, US equity market suffers from the uncertainties in the near term. At this point, the gold market is enjoying capital inflows from the bonds and equities. We are expecting a bullish gold market in the short run amid all the questionable US economic policies that will be brought forward by the president-elect. Recently, gold is trading inversely to US dollar strength and we continue to monitor US dollar index to find clues for the gold prices. We are expecting spot gold trading at $1204 - $1225 per oz in the short term and USCAD  exchange rate ranging at 1.303 -1.320. 

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Bill H

Trader of Suncorp Gold Inc.

Tel: 604-273-9700

E-mail: bill@suncorpgold.com

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