Market Report: Strong rally on bear closing

Snippet: 
The euro having been under pressure rallied by nearly 3%, bearing in mind it is 40% of the dollar index. At last night’s close, gold was up 2.5% and silver 4% in the first week. Bear closing is the order of the day, as forewarned in last week’s market report. Everyone seemed to be bullish dollar/bearish everything else, and that was bound to reverse at some time. Whether the December highs for the dollar marks a significant turning point remains to be seen. If not, the bullion banks have unfinished business with bear positions in gold futures on Comex yet to be fully closed. The next chart is of net swaps in gold.

jan4 2017 gold vs silver

2017 got off to a good start for precious metals, assisted by a fall in the US dollar.

The euro having been under pressure rallied by nearly 3%, bearing in mind it is 40% of the dollar index. At last night’s close, gold was up 2.5% and silver 4% in the first week.

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First published here: Market Report: Strong rally on bear closing

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