7.20.2017 The euro has been on a steady rise so far in 2017 and it reached yearly highs today on the heels of the European Central Bank press conference. ECB President Mario Draghi said the bank saw signs of “unquestionable improvement” in European Union growth and intimated that plans are underway for policymakers to begin adjusting their quantitative easing program. The euro rallied to over 1.16 and dragged gold back over $1,240 with it.
Gold hasn’t seemed to really react to any headline concerning President Trump but today it appeared to jump higher on the latest Trump headline. The news was that special counsel Robert Mueller is now focusing the attention of the Russia investigation on Trump’s business transactions. Gold made three week highs and challenged, yet failed, at the convergence of the 50 and 100 day moving averages around $1,248.50.
The latest data from the CFTC showed that speculative short positions on Comex silver are at 2 year highs. This information was as of last week when silver was under $16. If gold is able to break above its current range, hedge funds and money managers that are short silver will be forced to cover their positions which could lead to a volatile spike higher for the white metal.
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