I am expecting inflation to be higher in Feb and Mar 2017 then probably falling off again later in the year.

Gold has not acted that exceptionally even though inflation already surprised on the upside in January 2017. However, there is also the strong US dollar to consider.

My site: http://1000gold.blogspot.com

Gold is down in all 15 currencies quoted on Kitco today but by less than 1% in each, about 0.5% on average.

Out of the gold stock prices they quote about 16 are up and the rest are down. There must be about 100 altogether. So five sixths of them are down, roughly.

Contradictory factors:

  1. This chart, a move under $1224 is bearish I feel.
  2. Inflation is likely to spike for Feb 2017 and Mar 2017, maybe above 3%.
  3. I think inflation will then fall later into the summer unless oil rallies.
  4. Will Yellen do a rate hike in March 2017?
  5. The Fed is already behind the curve right now. Next month they will be more behind but later in 2017 maybe not by so much.
  6. The Greek debt crisis and its effect on the Euro.
  7. Action in the US dollar index – I have no idea in what direction it will go.

It’s a mish-mash right now!