Gold and Silver Market Morning: Jan 17 2017 – Gold and Silver moving higher with a lower $!

Jon Gold, Market Commentary, Precious Metals, Silver

Gold Today – New York closed at $1,196.20 on the 16th January after closing at $1,198.30 on the 13th January. London opened at $1,213.20today.
Overall the dollar is weaker against global currencies today. Before London’s opening:
– The $: was weaker at $1.0650: 1 from $1.0593: 1 yesterday.
– The Dollar index was weaker at 101.09 from 101.70 yesterday.
– The Yen was stronger at 113.44: $1 from yesterday’s 114.11 against the dollar.
– The Yuan was stronger at 6.8860: $1, from 6.9082: $1, yesterday.
– The Pound Sterling was stronger at $1.2115: 1 from yesterday’s $1.2056: 1.
Yuan Gold Fix
Shanghai gold prices moved higher, with strength, through the $1,210 resistance. It traded today over Yuan 270 reaching 272 at one point. This equates, on today’s exchange rate, to $1,219.57 and $1,228.60.
Chinese investors know the Yuan will continue to fall and are protecting themselves against this. While the People’s Bank of China has been selling dollars to lift the Yuan over the last week, we doubt they will keep doing this after President Trump as of the 20th January takes office. China is preparing for a confrontation with him. We therefore see the Yuan continuing to weaken in 2017 and Chinese demand to remain robust, despite Xi’s plea not to go to a trade war and keep markets free at Davos.

This post was published at GoldSeek on 17 January 2017.