“Metals prices have benefited from the improved global economy and from a recently weaker US dollar, in which most commodities are valued, with the Standard & Poor’s (S&P’s) GSCI reaching a two-year high on January 26, aiding the uptick in global exploration, the research firm’s ‘World Exploration Trends’ report reveals.
In January 2018, the dollar’s trade-weighted value was the lowest since December 2014, which extended the gains since December 6 to almost 12%.
Further, S&P’s noted US Treasury secretary Steven Mnuchin’s comments that a weaker dollar was “good for trade”, adding to the bullish sentiment for natural resources.
Gold benefited the most. The precious metal started 2017 at $1 157/oz, ended the year at $1 303/oz and traded at $1 359/oz on January 25 – its highest price since August 2016.”