Gold Price Marks 3-Month Highs

Gold Price Marks 3-Month Highs

Gold Price Marks 3-Month Highs


Gold futures rose to the highest in more than 2 months on uncertainty in geo-political issues, and the possibility of no rate hikes soon.

Friday, the data showed US wage growth slowed, reducing the odds of Fed rate increases this year and sending Gold to the biggest weekly gainer since June 2016.

Uncertainty about US President Trump’s domestic fiscal stimulus policies and his administration’s spats with traditional allies helped push hedge funds’ Bullish bets on Gold to the most in almost 2 months.

  • April Gold ended Monday’s session + 11.70 (+1.0%) at $1232.30 oz
  • March Silver closed Monday’s session +0.21 higher (+1.2%) at $17.70 oz

Bullion has risen 6.9% this year as investors seek a haven amid President  Trump’s recent disagreements with Germany, Japan, Mexico and China. Traders are cautious that President Trump’s policies aimed at paring regulation, cutting taxes and keeping jobs within the US borders may not move forward as quickly as anticipated.

Uncertainty about economic policy and the pace of rate increases “may help spur purchases of the metal as a short-term safe haven by central banks and investors,” an analyst wrote in a research note.

Holdings in SPDR Gold Shares (NYSEArca:GLD), the largest exchange-traded fund backed by bullion, rose for 3 days running through Friday, the longest stretch of gainers since October.

The net-Long position, or wagers on a rally, in Gold gained 21% to 72,067 futures and options for the week ended 31 January, according to US Commodity Futures Trading Commission (CFTC) data released three days later. That’s the highest mark since 6 December.

Symbol Last Trade Date Change Open High Low Volume
NYSEArca:GLD 117.67 6 February 2017 1.83 117.07 117.7 116.74 6,730,598
HeffX-LTN Analysis for GLD: Overall Short Intermediate Long
Bullish (0.26) Neutral (0.19) Neutral (0.16) Bullish (0.44)

Stay tuned…

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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.

One Response to "Gold Price Marks 3-Month Highs"

  1. David Smith   February 7, 2017 at 4:15 pm

    “Holdings in SPDR Gold Shares (NYSEArca:GLD), the largest exchange-traded fund backed by bullion, rose for 3 days running through Friday, the longest stretch of gainers since October.”

    I keep hearing about claims on GLD’s questionable holdings here but I’ve yet to see any verifiable evidence to support these claims. How reliable are GLD’s holding reports? GLD does not give retail investors the right to redeem for any of its mystery physical gold holdings. This fact alone ensures the GLD shares to be nothing more than paper at the end of the day. GLD also has a glaring audit loophole in their prospectus that states they have no right to audit subcustodial gold holdings. To this day, I have not heard of a single good reason for the existence of this backdoor to the fund. Some other red flags I’ve stumbled upon, verified and welcome everyone else to verify for themselves:

    “Did anyone try calling the GLD hotline at (866) 320-4053 in search of numerical details on GLD’s insurance? The prospectus vaguely states “The Custodian maintains insurance with regard to its business on such terms and conditions as it considers appropriate which does not cover the full amount of gold held in custody.” When I asked about how much of the gold was insured, the representative proceeded to act as if he didn’t know and said they were just the “marketing agent” for GLD. What kind of marketing agent would not know such basic information about a product they are marketing? It seems like they are deliberately hiding information from investors.”

    “I remember there was a highly publicized visit by CNBC’s Bob Pisani to GLD’s gold vault. This visit was organized by GLD’s management to prove the existence of GLD’s gold but the gold bar held up by Mr. Pisani had the serial number ZJ6752 which did not appear on the most recent bar list at that time. It was later discovered that this “GLD” bar was actually owned by ETF Securities.”

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