Price of Gold at 3-1/2-month high

Gold steadied around a 3-1/2-month high on Thursday as prospects for further U.S. interest rate increases put the brakes on a recent rally, while palladium touched record highs on tight supplies.

Spot gold rose 0.5 percent to $1,319.27 an ounce by 2:55 p.m. ET, while U.S. gold futures for February delivery settled up $3.10, or 0.24 percent, at $1,321.6 per ounce.

Palladium rose 1.2 percent to $1,095.24 an ounce, earlier hitting a record high of $1,105.70.

"(Gold) is beginning to look overvalued. Our fair value for gold assuming a (U.S.) rate hike in March and June is around $1,230, so at current prices it looks expensive," said James Butterfill, head of research at ETF Securities.

Here are my thoughts on gold. It looks like Gold is going up because of a weakening dollar along with other commodities like oil and copper. I don't think the Fed will raise rates in 2018 because Trump wants rates low so the government can afford the tax cuts and increase spending on infrastructure. So the end of March might be a break out period for Gold when there's no rate hike and we could quickly see gold up to the 1400 level or more. I might even a little bit of profits out of cryptos before March and buy some more precious metals.