From Economic Calendar:
Gold prices gained more than 1% in today’s trading, as the US dollar index fell to a new low in the decline that has been underway since the kickoff of 2017. The gold contract for April settlement on the COMEX division of the New York Mercantile Exchange rose as high as $1,214.7 and ended the session with a $15.40 (1.3%) gain at $1,211.40/oz.
The dollar got hit today after comments from Peter Navarro, the head of Donald Trump’s new National Trade Council. He stated that Germany is using the “grossly undervalued” euro to exploit its US and EU trade partners.
Also not helping the dollar’s case were comments from Trump himself who stated in a meeting with top officials from several US drug manufacturers that pharmaceutical companies were outsourcing production because of currency devaluation outside the US. The US dollar index, which measures the greenback’s strength against a basket of six currencies, is currently trading at 99.58, down 0.79%.
The dollar was already under pressure heading into today’s session, given Monday’s downside reversal after President Trump issued an executive order to temporarily ban citizens from several majority-Muslim countries from entering the US. The order has sparked uncertainty surrounding the Trump presidency and sent investors out of the dollar and equities and into the safe-haven of gold.
As a result of today’s move to the upside, gold prices have broken above overhead resistance at the January 19 low at $1,198.10. The solid break above this level has voided the minor double top that was confirmed with last week’s decline. The move above this level now leaves the target at the recent highs near the $1,220 level....MORE