Stronger US Dollar & Fed policy Might Pull Precious Metals Into Recession in 2017

As we enter 2017, a further weakness in platinum, gold and silver against the rising US dollar is forecast. Furthermore, the change of the Federal Reserve policy from infinite monetary easing to indirect helicopter money will ultimately raise both inflation and growth, but only through a decline in value of commodities and precious metals.

Let’s focus on these three precious metals commodities

Gold

Below, we can see the CME COT report that present gold’s contracts spreads and open positions. Our forecast is for a strong decrease on the positions before the trend will terminate, therefore, until then the gold price trend remains negative.

Silver

Silver price prediction – 12.50 area as long as the commodity remains below 17.80 area.

Platinum

Platinum price prediction – 670-720 area as long as price remains below 814 area.

Similarly, the CME COT report for platinum supports further price decrease in the upcoming year: