Frank Holmes | July 24, 2017 - 9:25am

Strengths

•The best performing precious metal for the week was silver, up 3.34 percent as investors loaded up on ETFs that purchase the physical metal, perhaps speculating that silver would outperform gold if the latter rallied. Gold traders and analysts remained bullish this week, for the fifth week, as the European Central Bank keeps its stimulus going, reports Bloomberg. In addition, as the dollar slumps amid an investigation into President Trump, gold heads for the first back-to-back weekly advance since early June, another Bloomberg article reads.
•Gold bulls are keeping their faith in the metal, reports Bloomberg, as the equity rally pares the yellow metal’s gains. Gold bulls have pointed to slow inflation and Fed concerns that asset prices look “somewhat rich.” Similarly, a Bank of America Merrill Lynch survey shows fund managers are growing hesitant to buy U.S. equities. Jason Mayer of Sprott Asset Management says that the non-stop bull market has led to a lot of complacency where managers aren’t hedging. “Once that tide turns, that could prove to be bullish for gold and precious metals,” Mayer said.
•After President Trump’s economic revitalization agenda once again faltered, the U.S. dollar fell to an 11-month low this week, reports Bloomberg. Opposition to Trump’s health-care reform bill, along with European shares dropping amid earnings disappointments, sent gold to its highest level this month.




Weaknesses

•The only negatively performing precious metal for the week was palladium, off 1.62 percent. Hedge funds and money managers seem to be losing their faith in gold, along with other precious metals, reports Bloomberg. Before posting its first weekly gain in six weeks, the net-long position in gold fell to the lowest in 17 months for the week ended July 11. Money managers are hitting the exit as they brace for monetary tightening in the U.S. and Western Europe, the article continues, and aren’t waiting around for signs that the Fed may change its rate trajectory.
•U.K. Royal Mint sales dropped in the second quarter by 62 percent compared with the previous three months, reports Bloomberg. Sales are down 41 percent from a year earlier. And according to data on the Swiss Federal Customs Administration’s website, Swiss gold exports declined 169.5 tons in May. Month-over-month exports to India also fell, but exports to China and Hong Kong both rose.
•Jaguar Mining previously had seen its 2017 gold production output at 100,000 ounces, but the company cut its forecast to 95,000-105,000 ounces, reports Bloomberg. Positive news, however, came after its decision to leave Turmalina at Level 9 and commence development and mining of Level 10 in Orebody A. Turmalina saw significantly stronger production in June versus April following this decision, the article continues.

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