Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

GoldSeek Radio Nugget: Dr. Marc Faber and Chris Waltzek

Ira Epstein's Metals Video 1 17 2018
By: Ira Epstein

The Scent of Dow 30,000
By: Rick Ackerman

Asian Metals Market Update: January-18-2018
By: Chintan Karnani, Insignia Consultants

Gold Seeker Closing Report: Gold and Silver End Lower in Mixed Trade
By: Chris Mullen, Gold Seeker Report

2018 Should Be Bullish For The Precious Metals Sector
By: Dave Kranzler

Recipe Calls for a Broad Commodities Rally in 2018
By: Frank Holmes

Here’s What Historically Happens to Stocks When Bull Markets End
By: Jeff Clark

More U.S. States Are Knocking Down Gold And Silver Barriers
By: Mike Gleason

So That’s What Volatility Looks Like
By: John Rubino


GoldSeek Web

SWOT Analysis: The Dollar’s Future and What That Means for Gold

 -- Published: Monday, 30 January 2017 | Print  | Disqus 

By Frank Holmes


  • The best performing precious metal for the week was platinum, up 0.74 percent.  Silver also clocked a positive gain of 0.28 percent.  Economic growth in the U.S. slowed more than forecast last quarter on the biggest trade drag in six years, reports Bloomberg. Net exports subtracted 1.7 percentage points from expansion in the October – December period, as dollar strength likely was a drag on growth.  Should the new Trump administration push for a weaker dollar, this could lend support to gold.
  • China purchased a net 47 tons of bullion in November, according to data from the Hong Kong Census and Statistics Department and compiled by Bloomberg.  Additionally, shipments of gold from Switzerland to China surged more than fivefold to 158 tons in December, Bloomberg continues, the highest since at least January 2014. Appetite for gold is soaring ahead of the Lunar New Year.
  • According to Bloomberg, the four ETFs backed by gold that have attracted the most money this year are all based in Western Europe. Xetra-Gold, listed in Frankfurt, tops the list by bringing in around $544 million last week. Europeans are turning to the gold on fears that Trump’s “America first” rhetoric will impede global economic growth.


  • The worst performing precious metal for the week was palladium, down 6.65 percent. The metal is headed for its worst weekly drop in more than a year. CPM Group reported they see palladium and platinum in surplus for the next few years and estimated there are 25 million ounces of palladium in stockpiles, most held by investors.
  • Physical gold demand fell in 2016 to its lowest level since 2009, reports Reuters, as increased prices weighed on appetite for the metal. GFMS, a research unit of Thomson Reuters, also notes that gold jewelry demand is at a 28-year low. Jewelry consumption is down 9.7 percent year-over-year at 551 metric tons in the fourth quarter.
  • As U.S. equities looked to extend a rally on Friday, gold retreated for what might be a fourth-straight day of losses.  However, real rates dropped a bit before the market open and gold eventually crawled into positive territory.  “Gold was due for a short-term pullback, after rallying almost non-stop since late December,” Jordan Eliseo of Australian Bullion Co. said. “Strength in equity markets, with the Dow topping 20,000 points, soft physical markets and a greater focus on rate hikes from the Fed has seen the metal sell off.”


  • UBS says the dollar has peaked and is likely to decline this year under President Trump, reports Bloomberg. The wealth management unit at UBS expects the currency’s future weakness to boost the price of base and precious metals. “We hold that view because we see real interest rates going deeper into negative territory.” Earlier in the week Steve Mnuchin also commented on the dollar, defying two decades of convention at the office of the U.S. Treasury Secretary by stating, “From time to time, an excessively strong dollar may have negative short-term implications on the economy.” In a similar note, Brown Brothers Harriman noted a recent St. Louis Fed study which showed how a strong dollar from 2014 to 2016 was associated with a drag on growth from net exporters.

  • According to BlackRock, inflation is rising faster than many investors may realize, citing examples such as rising housing prices, uncontained medical inflation, rising wages and more. So what does this mean for investors? BlackRock says, “Should inflation expectations rise faster than nominal rates, gold is likely to continue to merit a place in most portfolios.”
  • The World Gold Council believes the Indian government should lower the taxes on gold, currently at 13 percent, to help curb smuggling and promote transparency in local gold trade, reports Bloomberg. With a high customs duty, gold is being imported through the unofficial channel, the article continues. If India wants to eliminate corruption, a high tariff only encourages smuggling.


  • BNP Paribas SA, the top gold and precious metals forecaster in the fourth quarter according to Bloomberg, expects the Federal Reserve to go “rapid-fire” on interest rates, boosting them every quarter in 2018. This tightening will strengthen the U.S. dollar and push gold down toward $1,000 an ounce, reports Bloomberg.
  • The forecasted gold demand recovery from a seven-year low in India has been delayed, according to the World Gold Council. The WGC says gold consumption in the country will not return to normal levels until 2018, as a liquidity squeeze tightens spending this year, reports Bloomberg. In a report published Tuesday, the group estimates India’s usage between 850 metric tons to 950 tonnes by 2020 versus demand of 650 to 750 tonnes in 2016.
  • Two of the biggest gold producers in South Africa, Sibanye Gold and AngloGold Ashanti, have been accused of putting workers’ lives at risk, reports Bloomberg. The Department of Mineral Resources argues that the companies are unwilling to follow the laws, while the two miners have criticized government inspectors for being too heavy-handed in temporarily closing mines for safety breaches, the article continues. AngloGold won a court ruling in October that blocked one such closure and Sibanye is suing Minister Mosebenzi Zwane and other officials for compensation after its Kroondal platinum mine was closed. Over the past decade AngloGold has reduced operating fatalities by more than 80 percent.

| Digg This Article
 -- Published: Monday, 30 January 2017 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2017 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of, its affiliates or advertisers. makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, is strictly prohibited. In no event shall or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.