Morning Snapshot: Gold continues to consolidate recent gains

USAGOLD/Peter Grant/04-18-17

Gold continues to consolidate the recent push to 5-month highs. Similarly, silver is consolidating after hitting a 5-month high of 18.64 in overseas trading yesterday.

The dollar remains defensive in the wake of President Trump comments last week and speculation that “strong dollar policy” is dead. Reuters reports that

Goldman Sachs abandoned the two strong dollar plays in its 2017 trading recommendations on Tuesday, pointing to the Trump administration’s concerns over the strength of the currency and improvement in growth in rival economies. — Reuters

A sharp decline in housing starts in March is also helping to underpin the metals. Industrial production comes out later this morning. Median expectations are +0.4%. We’ll also hear FedSpeak from Ester George.

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