Gold rose for an eighth straight session on Wednesday, but it’s move higher has been quite baffling, as there really has not been all that much behind the rally. Although the dollar has weakened over the course of the past week, its decline has not been that precipitous. (In fact, it is on track to end December pretty much where it started the month off at). Rather, we think that gold seems to be benefiting from an increasingly constructive chart picture, with a V-shaped formation taking prices to just below a breakout level. In addition, moving averages have turned bullish as well, with the 50-day crossing over the 200 day on Tuesday. All in all, gold finished up some $4/ounce on Wednesday and is now up by roughly $50/ounce from the December 11 low of $1242. Silver also moved up on Wednesday to finish at just over $16.70, while palladium hit a fresh 17-year peak. Platinum also inched higher, hitting a three-week high.
|Precious Metals Daily Report --- December 28 2017.pdf||423.43 KB|