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Gold has traded between $1,206 and $1,220 so far today…as of 10:30 am Pacific, bullion is up $10 an ounce at $1,213…Silver has jumped 30 cents to $17.08…Copper is off 3 pennies at $2.61…Nickel has retreated 5 cents to $4.56…Crude Oil is 52 cents higher at $52.89 while the U.S. Dollar Index has tumbled more than a full point to 100.45…

Comments on the greenback by President-elect Donald Trump weighed heavily against the Dollar Index today…in an article in the Wall Street Journal, Trump said the currency is “too strong” and its high value vs. China’s yuan “is killing us“…we highly doubt Trump made those comments flippantly…he has talked about winning on trade consistently over the last year, and it’s more difficult to win on trade when your currency is surging…Trump’s comments are the clearest indication yet that the new administration would prefer a weaker dollar (another “race to the bottom” in currencies?)…meanwhile, Trump also criticized part of the House Republicans’ corporate tax plan, known as a “border adjustment” (BAT)…analysts had largely expected the plan to tax imports and exempt exports, which would likely boost the greenback…

Gold is trading at near 8-week highs and appears to be gearing up for a challenge of its 200-day moving average (SMA) in the $1,260’s…

Chinese President Xi Jinping said today that globalization has powered worldwide growth and should not be blamed for the world’s problems…in an attack on anti-globalization rhetoric, Xi told a packed audience at the World Economic Forum at Davos, “It is true that economic globalization created new problems, but this is no justification to write off economic globalization altogether.  Rather we should adapt to and guide economic globalization, cushion its negative impacts and deliver its benefits for all countries.” 

Xi’s speech marked the first time a Chinese head of state has visited the Davos event where the world’s elites love to hang out…

Copper-U.S. Dollar Relationship

You may have noticed that Copper and the U.S. dollar have been moving nearly in lockstep recently, a phenomenon that many analysts have attributed to a rising appetite for the metal among Chinese investors seeking to protect their wealth against the risk that the yuan would depreciate sharply against other global currencies, primarily the greenback (Trump’s comments, however, could further cement our TA view that the Dollar Index has topped out for the time being around Fib. resistance at 104 and will now consolidate in a trading range below that)…in November, the correlation between Copper and the WSJ Dollar Index reached its highest level since 2007, according to FactSet data…Chinese speculators buying Copper in dollars on the New York and London exchanges are one reason why the metal and dollar have been moving together, analysts say…

In Today’s Morning Musings…

1. More proof of a big turn in the Uranium sector…

2. Richmont Mines (RIC, TSX) reports record production >100,000 ounces in 2016…

3. Savary Gold (SCA, TSX-V) delivers encouraging new drill results from Karankasso, prepares for start of a 2nd phase 90-hole program…

4. Daniel’s Den – the latest scoop on Kopin as it hits a new high…

Plus more…click here to read the rest of today’s Morning Musings and all BMR exclusive content, through a risk-free Pro, Gold or Basic package, or login with your username and password…