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Gold up From Two-Week Low As Dollar Extends Losses - Reuters

Gold up From Two-Week Low As Dollar Extends Losses - Reuters

Release Date:  Friday, September 15, 2017

Gold prices pulled back this week as the threat of hurricane damage and a North Korea strike subsided. While North Korea continues to launch test missiles, the market shrugged off the looming threat.

“After the muted reaction to North Korea’s missile test, we saw investors seizing the opportunity to take profits from the swollen equity market, while shunning safe-haven assets…

While precious metals have sold off this past week, gold is holding the above $1,300 level on a weekly basis; a feat which hasn’t been seen since last October.

“After several weeks with higher closing prices, it’s not abnormal to see the gold price take a breather…

“Keep in mind we’re still trading strongly above the $1,300-level, so we wouldn’t read too much into this ‘down week’.” (“Gold’s ‘Safety’ Lift Fades, Leaving Weekly Retreat Intact.” MarketWatch 9.15.17)

Gold ended the week down $26.80, closing at $1,320.20. Silver prices closed at $17.64, down $0.39.

PRECIOUS – Gold up From Two-Week Low As Dollar Extends Losses - Reuters
“Gold rebounded from a two-week low on Thursday as North Korea threatened the United States and Japan, and the dollar softened despite strong U.S. consumer  inflation data, which could all further interest rate increases from Federal Reserve…

“A North Korean state agency threatened to use nuclear weapons to ‘sink’ Japan and reduce the United States to ‘ashes and darkness’ for supporting a U.N. Security Council resolution and sanctions over its latest nuclear test…

“‘These types of comments create a certain bid underneath the market,’ said Phillip Streible, senior commodities broker for RJO Futures I Chicago…

“‘Dollar weakness is (also) giving it some strength.’…”

“Also supportive was Chinese bitcoin exchange BTCChina’s announcement that it would stop all trading from Sept. 30…

“‘That’s creating an asset allocation shift back into more traditional safety plays in the gold market,’ Streibel said…

“The U.S. dollar index fell 0.4 percent against a basket of currencies. The drop came despite data showing a faster-than-forecast increase in domestic consumer prices in August.” (“Precious – Gold Up From Two-Week Low As Dollar Extends Losses.” Reuters 9.14.17)

Buy Gold Or Bitcoin? - TheStreet
“Chinese bitcoin exchange BTCChina said on Thursday that it would stop all trading as of September 30, leaving bitcoin to face a 30% slashing from its record highs earlier in the month…

“Todd ‘Bubba’ Horwitz, found of bubbatrading.com said that the cryptocurrency craze is part of the reason gold was not headed much higher. With the virtual currency now falling more than $500, will investors return to gold…

“’I don’t look at gold as a fear asset, it is a currency. If the fiat currency fails then gold is a great haven to be owning,” Horwitz said…

“Gold is doing great – it is not doing as well as we want it to be doing because based on where the dollar is, it should be higher – but based on all the interest in cryptocurrencies they have taken away some of the steam.’ ‘Gold’s hold at $1,322 was a key hold and we should head back to $1,331.’” (“Buy Gold Or Bitcoin.” TheStreet 9.14.17)

Why The Price Of Gold By 2020 Will Blow Your Socks Right Off – TheStreet
“A long time neutral voice in the gold industry has turned noticeably bullish…

“Jeff Christian, managing director for New York-based research consultancy CPM Group says gold is headed much higher in the next three years. ‘We thought gold would find a bottom in 2015 and that by 2020 we could see gold set a new record gold price in nominal terms, above $1,700 an ounce…

“On Tuesday, gold prices were tempered after the metal scored a 12-month high last Friday. December Comex gold was last down $3.50 an ounce at $1,332.20. Christian adds that his firm conducted extensive research around the ideal gold allocation in today’s world…

“Since the early 1980s, most portfolio managers allocated a 5-10% holding in gold. This model, Christian says, had not been updated in years. ‘Given everything that is happening, in terms of risk reward, it is not 27-30%’.” (“Why The Price Of Gold By 2020 Will Blow Your Socks Right Off.” TheStreet 9.13.17)

Another Nail In The Petrodollar Coffin- MarketSlant
“Here Bloomberg outlines a deal that just went down further cementing the Russian/Chinese trade relationship…

“They neglect to discuss or even broach the implications to the US…

“The Implications are:

  1. Less dependence on the UDS
  2. US hegemony is weaker
  3. Despite our attempt to isolate China using various methods by Trump aligning himself with Russia in the triad of US-China-Russian power jockeying, the Russian Chinese relationship is deepening
  4. Commodity pricing and trade prosper in regions of demand is exemplified by exchange presence. In this case it is east
  5. By example – our game of chicken with North Korea needed to end with tan internal change there, and that will not happen as long as North Korea is self sufficient enough and a closed society culturally under China’s protections…

“Military solutions there cannot happen as South Korea will lose millions from even conventional weaponry…

“The aforementioned point of our inability to destabilize the NK regime via embargoes, sanctions, and rhetoric are the only care we really had to play other than bluffing militarily; and we lost?…

 “North Korea is a china sponsored nuclear power. Russia will continue to entice china by buy oil from it by dealing in gold, the saudis have it both ways, getting arms from us, selling oil to china, and getting paid with gold…” (“Another Nail In The Petrodollar Coffin.” MarketSlant 9.12.17)