Weekly Gold Update by Daniel March for GoldCore (May 6, 2018)

• US dollar strength amid weakening fundamentals and poor US jobs data Friday

• Gold buyers in other currencies see gains –  gold in EUR and GBP rises 0.7% & 0.9%

• YTD performance table suggests stagflation coming as Fed eyes inflation, lower growth

• Seasonal effect – gold to bottom this summer? (see charts)

• Silver is nearly 70% below it’s 1980 high and technically looks very good (see charts)

• Speculators cut long positions, GLD holds strong

• Boost for rural India – demand to benefit in Q2

• Turkey physical demand surges as Turks are “protecting their savings” with gold

• Egyptian billionaire putting half net worth in gold

• “Case for owning commodities has rarely been stronger” – Goldman

Editor: Mark O’Byrne

Gold in US dollar terms ended the week down 0.75%. Gold’s decline was likely primarily due to a stronger US Dollar Index (USDX) which was up 1.1%.

Gold rose after the worse than expected non farm payrolls on Friday before reversing the gains and then bouncign to close the day marginally higher. US job growth increased less than expected last month with the US economy adding just 164,000 jobs in April. This was less than the 193,000 jobs expected.

The USDX started the week strong, and once it pushed past its 200 dma in early trading Tuesday, both gold and silver were unable to hold up with selling pressure in the futures market.

A stronger US dollar came despite a backdrop of weakening economic data, US Pending Home Sales, ISM PMI, and the Non Farm Payrolls on Friday all came in below expectations.

The US economic outlook is clearly deteriorating but it appears to be still outperforming it’s global peers including the struggling UK and fr