Morning Snapshot: Gold and silver pressure highs for the year

USAGOLD/Peter A. Grant/04-04-17

Gold is back within striking distance of key resistance at 1261.01/1263.87, where the highs for the year correspond closely with the 200-day moving average. Silver too is pressuring the high for the year set in February at 18.48.

Risk aversion seems to be driving the latest gains, with the dollar firm as well. U.S. stocks are called lower.

The U.S. trade deficit narrowed more than expected in February. Later this morning we’ll see Feb factory orders. ECB President Mario Draghi speaks in Frankfurt and we’ll hear Fedspeak from Governor Tarullo.

The RBA left its cash rate steady at 1.50%, as was widely expected. However, the statement implied that the RBA would like to keep the A$ weak.

The depreciation of the exchange rate since 2013 has also assisted the economy in its transition following the mining investment boom. An appreciating exchange rate would complicate this adjustment. — Philip Lowe, Governor

Does that make Australia a currency manipulator?

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