Gold Up for 3rd Day Running On US Inflation Data

Gold Up for 3rd Day Running On US Inflation Data


Gold prices rose for a 3rd day running Wednesday, and was flat Thursday, as USD weakened and US bond yields fell despite solid US economic data that reinforced expectations that the Fed will press ahead with increases to US interest rates, or may not.

The data showed an unexpected rise in US retail sales in October and a pick-up in inflation making the Fed’s target at 2.0%.

The outlook for US tax cuts that could stimulate economic growth was enhanced Thursday, as the House voted to move its Bill forward to conference with the Senate.

The Key factors now shoring up Gold is the weaker USD and the rise in core inflation.

A weaker USD makes Gold cheaper for holders of other currencies, which stimulates demand, while lower bond yields make Gold more attractive by reducing the opportunity cost of owning non-yielding bullion.

Higher interest rates tend to push bond yields higher and boost USD.

The US inflation data can act as a trigger to break Gold out of the 1,265 – 1,290 range in which it has traded since mid-October.

On the technical side

Resistance is at the 50-Day MA, around 1,292 and a Fibo mark at 1,297.70.

Gold at 1283.34 is trying to move up to 1300. Near term looks Bullish to me.

Silver was up 0.8% at 17.14 oz.

Metalla Royalty and Streaming (OTCQB:MTAFF)

Limited risk with 100% Exposure to Gold and Silver (see the letter to shareholders)

Historically, companies in our business that choose to focus exclusively on gold and silver assets enjoy a higher market valuation. This is what you can expect now and for the future with Metalla.

Being able to invest at the ground level in a royalty and streaming company has often been restricted to insiders, officers, and directors.

Metalla could not be better positioned.

The company has an exceptional portfolio of royalty and streaming assets that we anticipate providing high-margin cash flow for decades.

It has a pipeline of development assets that will ensure Metalla a long life with no need to raise future capital to cover management costs.

Going forward Metalla intends to only raise capital or issue shares to make accretive transactions.

Symbol Last Trade Date Change Open High Low Volume
OTCQB:MTAFF 0.4744 16 November 2017 0.02 0.4455 0.4744 0.4455 13,400
HeffX-LTN Analysis for MTAFF: Overall Short Intermediate Long
Very Bullish (0.50) Bullish (0.46) Very Bullish (0.54) Very Bullish (0.50)

Stay tuned…

The following two tabs change content below.

Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

You must be logged in to post comments :