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The New Year will prove to be quite bullish for precious metals: ABC   To summarise this week’s global market fundamentals, Gold traded up to within a dollar of the ‘distinct’ resistance level mentioned in last Friday’s report before fading slightly.   The rally has been helped by the passage of the much-discussed stimulus bill by US Congress with US$900 billion going to Coronavirus relief and US$1.40 trillion for government funding through to September 2021. Precious metals moved higher since the announcement with Silver and Gold up 5% and 2% respectively.   The Dollar Index (DXY) is making a small comeback this week. There is good support around the 88.25 level, and DXY longs have been gently accumulating in the previous week, perhaps willing to take the view that the recent drop is overdone. If the DXY recovery continues, this could be a head-wind for gold movement so stay tuned as this situation unfolds.  The five-year forward Inflation expectations have ...

  Gold and Silver Sentiment to Rise Sharply  ABC Bullion Market Update views a gold and silver sentiment to rise sharply in the coming months! In the Precious Metals Commentary, the bullion said, gold continues its strong recovery, but hit the resistance discussed in last week’s commentary (…Resistance in gold should come in at US$1888-1910…) with gold making a high so far at US$1896. There is distinct resistance at the US$1908 level. The Dollar Index is a big factor behind gold’s move as correlations between gold and Treasury-Inflation Linked bond yields (TIPS) weaken relative to early 2020. The DXY’s move to 89.73 takes it very close to the 50% retracement of the move from the 2011 lows to the 2017 high at 88.20, and along with medium-term target to 89.90 and 89.60 level, there is the suggestion that the recent move downwards in the Dollar index may pause soon.  There are signs that non-commercials longs are tentatively trying to increase their exposure to the DXY from ...