The precious metals saw moderate advances Thursday, but this was especially impressive when you consider the dollar was around 0.6% higher - a pretty significant move in currency terms. The near term trend in the metals remains somewhat to the downside, with targets of GLD 158 and SLV 30.
Suffice to say, the fact the metals held up against the dollar - its second consecutive daily rise, was really impressive.
WTIC Oil - which is similarly highly susceptible to dollar strength, declined by around 2%. In many respects, on a 'normal' day, Gold would have lost around $30 today, with Silver slipping $1.50.
Are underlying currency concerns still keeping the two main precious metals from falling any lower?
With FOMC next Wednesday - where 45bn of T-bill buying (starting in January) will be confirmed, a further price boost to a broad range of assets seems likely in the latter half of next week.