Metal markets are quiet this morning ahead of the Fed decision at 2pm EDT today. With little chance of a rate hike this afternoon, the market awaits to hear the comments from the Fed committee. With all the encouraging economic data of late, we expect the committee to express a hawkish tone which would increase the chance of a rate hike in September. I still believe that even with some encouraging economic data, the Fed will be hard pressed to raise rates anytime this year with the rest of the world’s economies struggling at best.

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Gold net long spec positions declined for the second week in a row as more nervous longs head for the exit. On the positive side of the ledger, in the last two weeks ETF’s inflow continue in gold, but at a slower pace. Nonetheless gold trades at a 4-week low this morning as some Wall Street Traders are calling the gold market to test the $1,300 dollar level ahead of the Fed meeting later this week.

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Depending on who you are, whether a trader or investor in this market, we all use different terms to describe this type of price movement in gold. Technical traders call it consolidation, fund managers call it sideway trading and financial advisors call it boring.

Whatever term you prefer to use, the bottom line is the market is just sitting here looking for a direction. So the question remains, what bit of news would propel the market in one direction or the other?

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The following chart includes the year to date totals from the U.S. Mint as of 5pm on July 21st. Continue reading →

Dillon Gage Metals Talks Size, Composition and Value

ADDISON, TEXAS (July 21, 2016) – Dillon Gage Metals, an international precious metals wholesaler, is ready to educate the public on everything they need to know about the Olympic medals slated to be awarded at the 2016 Summer Games in Rio. And some of the facts may surprise you.

For openers, there’s the composition breakdown on the precious metals in each medal. The gold medals awarded to the best of the best are pretty much gold in name only. In reality, 92.5 percent of their composition is actually silver. Only one percent is actual gold (plated) with the remainder made of bronze. Silver medals are 96 percent silver and the bronze medals are approximately 97 percent copper.

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The price of gold under pressure this morning due to a stronger dollar. The dollar index hitting 97.32 this morning, the highest level since March. A continued rally in the equity markets also pressuring the price of gold. Continue reading →

Silver under pressure this morning breaking thru key support levels. The silver decline seen as just catching up to gold, as gold late last week also penetrated thru a key level at $1,332.

Friday’s strong job number and a calming of Brexit worries have taken the air out of the Gold rally for the time being.

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U.S. retail sales reported a strong number in June up 0.6 percent after a weaker number in May, just 0.2 percent. Dollar index seen in positive territory after the report putting pressure on the price of Gold this morning. The technical level everyone was watching at $1,332 was violated yesterday as the Gold market traded down to the $1,320 level.

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The following chart includes the year to date totals from the U.S. Mint as of 5pm on July 14th. Continue reading →

Gold under pressure yesterday as money from overseas investors poured into the equity markets. Continue reading →

The strong job report on Friday didn’t change the continued bullish sentiment of the ETF gold investor. Continue reading →

A huge rebound in the June Job numbers over the dismal report in May immediately crushes the price of Gold and Silver. Continue reading →

Open interest Gold futures reported at an all-time high today at 662,840 contracts. Continue reading →

The rally continues driven by a number of factors. First and foremost is the daily increase in the ETF funds. Continue reading →

What a week it has been for precious metals. Brexit, Brexit fallout, the possibility of a Brexit reversal, suppressed crude oil prices, and not a Fed interest rate hike in sight. Continue reading →

With the Brexit Vote still reverberating through the global financial markets several days after the historic referendum, precious metals remain a strong safe haven. Today comes word that the UK’s decision might be reversible and it’s likely going to prolong the market fallout which has ensued.

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It’s official. In a stunning referendum vote, the U.K. decided to leave the European Union. It’s not what the pundits or poll watchers were expecting as the world woke up to the news on Friday. The effect on the global financial markets was both immediate and impactful. Continue reading →

Gold’s standing as a safe haven investment was strengthened overnight as the fallout from the Brexit vote swept the financial landscape. Continue reading →

The following chart includes the year to date totals from the U.S. Mint as of 5pm on June 23rd. Continue reading →

We’re six months into 2016 and it’s been quite a ride so far. Beginning in early February, gold prices took off and produced the biggest quarterly rally in the last three decades. Continue reading →

Two headline stories on tap for this week that could have an impact on the gold price.

Tuesday and Wednesday, the Fed chairwoman, Janet Yellen testifies before congress to deliver her semi-annual testimony. On Tuesday she will testify before the Senate Banking Committee and on Wednesday she speaks in front of the House Financial Services Committee.

Everyone expects Chairwoman Yellen to repeat her message from last week that the Fed wil take a cautious approach to raising rates, as the U.S. economic data is still reported as “weak”.

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As expected, the Fed left interest rates alone during their scheduled meeting this week.

Citing an unexpectedly weak May jobs report and the looming Brexit referendum vote for England, Fed Chair Janet Yellen stated, “It is a decision that could have consequences for economic and financial conditions in global financial markets. If it does so, it could have consequences in turn for the U.S. economic outlook that would be a factor in deciding on the appropriate path of policy.”

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The following chart includes the year to date totals from the U.S. Mint as of 5pm on June 16th. Continue reading →

FED Watch.

Precious metal prices are modestly lower this morning as we await the decision from the FOMC meeting today at 2pm Eastern time.

We expect them to provide further guidance on when they expect to raise rates. Still the odds are very low that a rate hike will happen today or in July and a 30 percent chance in September. I expect the odds might change a bit after hearing what they have to say today.

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Good morning from the IPMI conference in Phoenix, Arizona, where hundreds of traders and dealers from around the world exchange ideas in the Precious Metals markets. You can see the hotel lobby fill up with it all the traders and dealers every hour on the hour for meetings. Companies are here trying to establish new relationships, rekindle old ones and exchange ideas in technology.

Dillon Gage’s cutting edge technology continues to evolve and stands out as the leader in physical electronic trading platforms. Matter of fact, I didn’t see or hear of any other firm offering a comparable trading platform like “FIZ” trade. For any precious metals business, a precious metals platform is a must in order to compete with the worldwide electronic algorithms that move the price of metals in a heartbeat.

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We’ve witnessed gold up almost 5 percent this week after the disappointing jobs number last Friday.

Hitting the news wires yesterday was a story about billionaire George Soros getting back in the gold market. Soros Fund Management, which manages $30 billion for Mr. Soros and his family, sold equities and bought gold and mining shares. Mr. Soros indicates that he sees a bleak outlook for the global economy, and has directed some of his companies’ investments into the metals arena due to his concerns about political issues in China and Europe.

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The following chart includes the year to date totals from the U.S. Mint as of 5pm on June 9th. Continue reading →

The World Bank cut its 2016 global growth forecast today to 2.4 percent, down from the 2.9 percent estimated in January. The move is due to sluggish growth in advanced economies, low commodity prices, weak global trade and diminishing capital flows.

Gold, liking that kind of news, is trading up $ 13.00 on the day, at the time of this report. Silver, the so-called “poor man’s gold,” is trading either side of $17.00 this morning (consider just a week ago the worry was, are we going to hold the $16.00 dollar level?).

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I just finished listening to Chairwomen Yellen’s 30-minute speech regarding the possibility of future rate hikes. Continue reading →

After the poor jobs number on Friday, the market now awaits comments from Fed Chairwoman Janet Yellen. Ms. Yellen scheduled to speak today at 12:30 eastern time in Philadelphia.

When I first started in this business almost 40 years ago, the news items that seemed to move the gold market the most, were news on inflation and supply and demand concerns. Now for the most part, the market holds its breath on every comment made by any Fed official regarding interest rates, watching the action in the dollar and unemployment / jobs news.

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It will be very interesting to hear what the Fed presidents NOW have to say after this very weak May jobs report. Continue reading →

The following chart includes the year to date totals from the U.S. Mint as of 5pm on June 2nd. Continue reading →

Now that the minutes of the April FOMC meeting have been revealed and the market has absorbed the news, market participants now sit on the sidelines awaiting U.S. data to be released later in the week before considering entering the gold market again. Continue reading →

Ok, she folded under the pressure. Being a compassionate person, feeling sorry for the poor Wall Street Bond trader delaying his weekend trip to the Hamptons, Fed Chair Yellen answered the question we were all waiting to hear during her interview today with Harvard professor Greg Mankiv. Continue reading →

Will she or won’t she? Continue reading →

The price of gold is trying to consolidate around the $1,220 level as the cloud of higher interest rates hovers above. Redemptions seen in the Gold ETFs overnight and open interest in the CME futures also seen declining in the past few days. Continue reading →

It is inevitable that the precious metal markets will be influenced right after comments of any FED governor. Continue reading →

It’s a little after 3 am on the east coast as I start my comment today, because I have to leave early this morning on business and will be driving, Continue reading →

Gold feeling pressure after comments from San Francisco Fed President John Williams and Atlanta Fed President Dennis Lockhart. Continue reading →

Metals start off the week in positive territory, with the dollar index in negative territory today. Stronger oil prices have some Middle East traders back in the gold market, Continue reading →

Controversy abounds after the comments made yesterday by Bank of England’s Governor Mark Carney. Looking at the coming vote June 23rd, Carney said, Continue reading →

Gold has a two-day recovery and remains in a “bullish mode” after all the bad news out of China on Monday had been absorbed. Continue reading →

Markets under pressure this morning after gloom and doom Chinese data overnight. Also hitting the wires is news that Greek lawmakers have agreed to a pension and tax reform plan that will Continue reading →

Here is a story that caught my eye overnight that I wanted to share with my readers: China to make it easier for gold imports and exports to cross their borders. Continue reading →

Federal Reserve Bank of Atlanta President Dennis Lockhart said yesterday that the U. S. Financial markets may be underestimating the odds of a central bank rate increase in June. Continue reading →

We start the week viewing strong inflows into the gold ETF funds. Fueling the rally is a continued weakness in the dollar. Continue reading →

Gold hits a 7 week high and silver climbs to the highest in 15 months.

GDP growth reported yesterday for the first quarter 2016 was 0.5 percent. Continue reading →

Fed leaves rates unchanged as expected.
Fed continues its stance that rate hikes will be data dependent. Continue reading →

The FED ends their two-day meeting this afternoon with an announcement at 2pm Eastern. Continue reading →

We start the week viewing the price of gold higher due to a weak dollar. Continue reading →

Jump in, the water’s fine.

Good physical demand in the Precious Metals arena. Here are some interesting facts from the United States Mint: Continue reading →

Yesterday dealers reported good two way action in the physical gold market. Weaker dollar and weaker economic indicators were behind the rally in all four metals yesterday. Continue reading →

They’re at it again. New York Fed president William Dudley said today, “Gradual path to rate hikes are appropriate. Continue reading →

A Dillon Gage Metals Primer on Proper Compliance

ADDISON, TX (April 7, 2016) – Dillon Gage Metals, an international precious metals wholesaler, is offering free tax advice ahead of the April 15th deadline. Continue reading →

The minutes from last month’s meeting indicated that members could not agree if a rate hike at the next FED meeting in April was in order. What they did agree on is that risks from a global economic slowdown warranted a cautious approach. Continue reading →

As the market waits for the release this afternoon of the FED minutes from the last meeting we see all four metals in negative territory. Continue reading →