Gold prices have risen 11% in January, closing today at $1,738.10/ounce. The yellow metal has been gaining strength as the euro makes a comeback against the dollar and as WTI crude oil prices hang around $100/barrel even while most traders expect crude prices to rise.
The tie between the euro and gold is a foil to the US dollar as a safe haven. If the euro rises, investors are happy to buy gold and leave the dollar. When the dollar gains strength, its status as a safe haven takes some of the shine out of gold.
WTI crude prices have hovered around $100/barrel for six weeks or so. The price of Brent, though, has come up from around $102/barrel in mid-December to around $111/barrel today. If there is any major threat to supply, look for Brent to open up a larger differential to WTI.
Both the dollar-euro index and the price of crude are worth watching for hints at what gold is like to be doing.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
