Daily Gold Update

Source:Dana Samuelson, American Gold Exchange

Austin— Gold, silver and platinum all moved higher today, while the dollar fell modestly on the U.S. dollar index and against the euro. Today gold and the dollar remained within recent trading ranges, but silver was the clear winner of the day, gaining 46 cents, or 2.8% at the New York close. In doing so silver punched firmly over major short-term upside resistance at $17.00.

Gold has continued to find bidders at $1,160 in the last few trading sessions. Today those bidders became more active. Price action for gold, platinum and especially silver suggest today�s move higher was spurred by traders covering shorts ahead of next weeks Fed meeting. While gold gained 0.54%, silver was bid sharply higher in early New York trading, moving quickly from under $16.90 to as high as $17.30 on the March contract before consolidating today�s gains comfortably over $17.00 at just under $17.25.

Conversely, the yield on the U.S. 10-year treasury softened 1.8% today to 2.35% after hitting one-year highs last Thursday at 2.49%. While market makers continue to expect, the Fed will raise interest rates next week, looking forward, traders are beginning to consider that the Feds glide path towards higher rates in 2017 will be gentler than previously anticipated.

Gold was also buoyed by the prospect of growing demand for gold in 2017, driven by the World Gold Council�s announcement that a Sharia standard for gold investment has been established, which defines the Sharia guidelines for gold transactions. This opens the way for Islamic institutions to trade gold and silver much more actively than has previously been the case.

At the Comex close: February gold gained $7.40 to $1,175.50; March silver surged 46 cents to $17.27; January platinum rose $7.50 to $943.20; and March palladium slid $1.55 to $732.85 an ounce.