Price of Gold Today Continues 2017 Rate Hike Rally

The price of gold today (Friday, March 31) is up 0.4% to $1,248, continuing the metal's strong rally recently.

If you've been watching gold prices, you know the metal has blasted higher since the Fed hiked rates on March 15. Since then, gold has gained 3.9%, or about $47.

Meanwhile, the U.S. dollar, stocks, and oil prices have been stalling. That's reversed somewhat in the past week, but gold's price action has remained resilient.

Trump's plan to repeal and replace Obamacare has failed, leaving some investors doubtful about the "dealmaker's" ability to accomplish further reforms. Chief among those are promised tax cuts for businesses and individuals, which fueled the post-election market rally.

If the dollar's strength was a combination of expected higher interest rates and an economy stimulated through tax cuts, perhaps traders are having serious second thoughts.

Are we getting dead cat bounces right now in the dollar? We just might be. I'll discuss what this means for my 2017 gold price prediction.

First, here's a recap of the day-to-day gold price movements this past week...

Price of Gold Today Puts the Metal on Track for a 0.4% Weekly Gain

After closing at $1,243 on Friday, March 24, gold prices opened the week sharply higher on Monday. Despite the dollar strengthening throughout the day, gold managed to settle at $1,254 for a 0.9% gain.

Don't Miss: An incredibly rare gold anomaly is shaping up in the markets as we speak -- one that has occurred ONLY twice in the past 20 years. And it's about to happen again. Details here...

Tuesday's gold action fell victim to even more dollar strength, with the U.S. Dollar Index (DXY) jumping midday from about 99.25 to 99.75. The gold price actually rallied into the open at $1,255 but retreated to $1,251 to lose 0.2% on the day.

After overnight weakness, gold opened slightly higher on Wednesday at $1,252. Even as the DXY managed to regain the 100 level, the price of gold closed up 0.2% at $1,253.

On Thursday, March 30, the dollar pressured gold prices as it spent nearly the entire day above 100. Gold opened lower at $1,248 and kept falling as the dollar surged to 100.5. The gold price ended the day 0.8% lower at $1,243.

Now, the price of gold today has gained 0.4% and trades at $1,248. That puts the metal on track for a weekly rise of 0.4%.

It's clear that the dollar rising above 100 has had the biggest influence on gold prices this week. When the DXY breaks above a significant level like that, gold investors tend to panic.

But this retreat is only short term. I see gold running much higher this year, regardless of the dollar's long-term movement.

Here's my target for gold prices in 2017...

My 2017 Gold Price Forecast