12th January, 2017

Gold pushed higher over the course of the day and came within $2/ounce of taking out the $1200/ounce mark. The precious metal is now at a sevenweek high on account of a steadily weaker dollar, which lost ground again on Wednesday in the aftermath of Presidentelect Trump’s rambling press conference. Tough statements Trump made about trade and pharmaceutical companies knocked the stock market back and although equities recovered by the close, their weakness still gave gold a bit of a lift. Lower US treasury yields also undermined the dollar, as they dipped to a one-month low. Bucking the trend, the Mexican peso hit a new low against the greenback after Trump again warned that US auto companies would face a high “border tax” for products made in that country. Silver did not do much, but palladium lost substantial ground and is now carving out a clear double-top on the charts.