Gold Feeling Pressure

Gold Feeling Pressure

Gold feeling pressure this morning while staying firmly above $1,630 as U.S. stock markets rally following their steep 2-day declines which included the Dow Jones Industrial Average posted its biggest two-day drop in percentage terms in two years. This morning, the Dow is up over 200 points at the opening bell in a somewhat expected rebound.

April gold futures settled at $1,650 an ounce Tuesday on Comex. The yellow metal edged higher Wednesday after dropping 1.6% in the previous session on profit taking. The daily decline didn’t completely erase Monday’s 1.7% rally. Gold is up 3.9% this month as investors have sought safe-haven assets amid mounting fears about the coronavirus and its economic impact. Currently, the April contract is at $1,635.50

The spread of coronavirus outside China has spurred gold toward $1,700 but has also caused equities to tumble. The U.S. Centers for Disease Control added to coronavirus fears Tuesday as the agency warned Americans to prepare for a coronavirus crisis. Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.7% Tuesday to 940.09 metric tons, Reuters reported.

The Dow fell 3.2% Tuesday after sliding more than 1,000 points Monday, the third worst one-day point drop in the index’s 124-year history. The Standard & Poor’s 500 Index dropped 3% Tuesday.

The coronavirus, designated COVID19, has killed almost 2,800 people worldwide and sickened over 81,000. Most of the cases have been in China, where the outbreak started. The virus is a WHO-designated global health emergency.

“It’s not so much a question of if this will happen anymore but rather more a question of exactly when this will happen and how many people in this country will have severe illness,” Dr. Nancy Messonnier, the head of the National Center for Immunization and Respiratory Diseases at the Centers for Disease Control and Prevention, said during a media briefing, according to NBC.

Fears that the disease’s spread will affect the global economy have increased speculation that the world’s central banks will have to cut interest rates — something that’s usually bullish for gold. The CME FedWatch Tool shows 65.6% odds in favor of a rate cut by the Federal Reserve in April, compared with just 12.8% a month ago. The probability of a cut at the next meeting of policy makers — in March — has also increased to 32.1% from 3.8% a month ago.

In economic news this week, U.S. GDP, initial jobless claims, durable goods and pending home sales data are due out on Thursday. Japanese industrial production, jobs and retail sales figures are scheduled for Friday.

May silver futures fell 3.7% Tuesday to settle at $18.27 an ounce on Comex. They’ve dropped 1.9% in the first two days of this week. Front-month silver futures up 1.4% so far this month after a 0.5% rally in January.

Spot palladium, a metal used primarily in autocatalysts rose 2.8% Tuesday. It surged 11% last week and touched a new record amid a supply crunch. It’s up 19% this month. Spot platinum fel 4% Tuesday and is down 3.5% this month.

 

Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Gold Aiming at $1,700

Gold Aiming at $1,700

Gold aiming at $1,700 an ounce today, setting another seven-year high as investors’ flight to safe-haven assets accelerated when coronavirus cases outside of China spiked, heightening concern about the possible spread, duration and economic impact of the virus spread around the world. Continue reading…


Coronavirus Impacts On Gold

Coronavirus Impacts On Gold

Dillon Gage Gold expert explains why gold performs well in times of uncertainty

ADDISON, Texas (Feb. 21, 2020) Dillon Gage, the world leader in physical precious metals, explains why the coronavirus epidemic ravaging China may send gold futures prices to 7-year record highs above $1,700 an ounce and up.

Gold is considered a safe-haven asset, attracting investors around the world in times of economic or geopolitical uncertainty. But it’s also a commodity that has physical form, and China is the world’s fastest-growing market for physical gold.

This duality has created a tug-of-war in the gold market since the start of the year, with bulls putting money into gold as a safety net, while many of the usual physical buyers in China dwindle because of disease-imposed restrictions on travel, work and movement.

7-year record highs

The most active gold futures contract on Comex – the leading benchmark for the yellow metal – touched a 7-year record of $1647.49 yesterday. Prior to this recent activity, gold prices have stayed within a tight range in the $1,550s to $1,580s ever since. But that’s poised to change.

“This time last year, gold was selling for $1,336.73. It’s been seven years since we’ve seen gold’s value increase like it has the first few weeks of 2020,” said Dillon Gage President Terry Hanlon. “However, a major difference then and now is the strength of the U.S. dollar. Typically, gold doesn’t perform this well when the U.S. dollar is strong. However, a potential widespread viral outbreak of the coronavirus has created a global fear. The economic implications could be devastating.”

What is contributing to gold’s recent rally?

Uncertainty almost always finds buyers flocking to gold as a safe haven.
Investopedia defines a safe haven as, “An investment that is expected to retain or increase in value during times of market turbulence. Safe havens are sought by investors to limit their exposure to losses in the event of market downturns.”

Most recently, gold is likely to hit a series of new records because of a few worrisome factors:

  • The casualty rate from the coronavirus is climbing, and the disease doesn’t appear to be going away anytime soon
  • People like the chairman of the Federal Reserve and the head of the International Monetary Fund have started issuing warnings about the virus’s impact on economic growth
  • Disruptions caused by the disease are starting to affect manufacturing
  • There is fear of inflation

Hanlon explains, “Whenever a world crisis hits, investors get fearful of a potential slump in the financial markets. Typically, during these times, gold has a good run as a safe-haven investment because gold has historically held its value. That’s exactly what we are seeing now; investors buying gold as a hedge. Just look how gold performed during the last recession between 2007 and 2009. Overall, gold held its value while stocks fell significantly.”

Another example was the trade war between the U.S. and China and monetary-policy easing by the Federal Reserve and other banks triggered a huge run-up in precious metals prices in 2019.

“While there is a rush on physical gold, right now, the ill-informed investor may think of the yellow metal as a short-term play. In reality, precious metals are a crucial part of an overall balanced portfolio and should be present in good times and bad. Because of gold’s store of value, many astute investors liken physical metals to an insurance policy for your investments,” said Hanlon.

Dillon Gage is the world leader in physical precious metals trading and technology serving dealers, financial institutions, banks and brokerage houses around the globe. For more information on Dillon Gage Metals, please visit www.dillongage.com or call 800-375-4653. For a weekly update on precious metals, follow Dillon Gage’s blog at www.DillonGage.com/blog.

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About Dillon Gage Metals
Dillon Gage is the world leader in physical precious metals trading and technology serving dealers, financial institutions, banks and brokerage houses around the globe. Since 1976, Dillon Gage has led the way in innovation, advanced trading tools, technology and intellect. The firm is one of a handful who are authorized purchasers of bullion (including coins, rounds and bars) for all major world mints and maintains inventory in over 20 countries. Dillon Gage’s integrated products and services include numismatics, bullion and electronic trading of precious metals and fulfillment, API integration, physical gold tracked by blockchain technology, refining and storage. The firm operates: FizTrade Online Trading, IRAConnect, Dillon Gage Refining and International Depository Services Group, a privately-owned subsidiary of Dillon Gage Metals, with locations in Delaware, Texas and Ontario. Dillon Gage’s philanthropic arm, HELPS International, provides relief, development and educational opportunities to Guatemala. Learn more about Dillon Gage at www.dillongage.com.

Media Contact for Dillon Gage:
Jo Trizila
TrizCom Public Relations
972-247-1369 (Office)
214-232-0078 (Cell/Text)
Jo@TrizCom.com


Gold Holding Above $1,600

Gold Holding Above $1,600

Gold holding above $1,600 this morning after rising past that threshold yesterday, trading at a seven-year high, as investors sought safe havens from uncertainty about the coronavirus’s global impact. This morning the yellow metal shook off the U.S. producer prices report that showed a 0.5% jump last month. Continue reading…


Gold Easing Off

Gold Easing Off

Gold easing off near two-week high as investors continued to gauge the potential impact of the coronavirus on both the global economy and Chinese gold demand, while the Chinese Central Bank steps in with a monetary policy intervention in an attempt to limit the economic impact from the virus outbreak. Continue reading…


American Eagle 2020 YTD Sales

American Eagle 2020 YTD Sales

The following chart includes the American Eagle 2020 YTD Sales for 2020 Gold and Silver American Eagle year-to-date Sales from the U.S. Mint as of 5pm on February 13th. The chart below also shows the difference in sales from the last weekly report on February 7, 2020.

Dillon Gage is authorized t0 purchase gold, silver, platinum, and palladium bullion directly from the U.S. Mint, as well as all the world’s major mints.
Continue reading…


Gold Still Near Seven-Year High

Gold Still Near Seven-Year High

Gold still near seven-year high — but dimmed early Wednesday after the Chinese government’s senior medical adviser said that the coronavirus scare, which has triggered a flight to safety by investors, may be over by April. Continue reading…


Gold Rose On Renewed Fears

Gold Rose On Renewed Fears

Overnight, gold rose on renewed fears that the coronavirus will trigger economic disruptions. Futures also rebounded after dropping sharply Tuesday. So far this morning, the yellow metal has shrugged off positive U.S. job numbers and a continued Stock Market rally. Continue reading…


Gold Drops Some This Morning

Gold Dropped Some This Morning

Gold drops some this morning as U.S. stocks regain ground and new economic data reveals surprise manufacturing expansion. The yellow metal had remained relatively steady through the weekend, coming slightly off a four-week high, after the People’s Bank of China intervened to support its economy. Continue reading…


Gold Hanging Tough

Gold Hanging Tough

Gold hanging tough this morning after losing a bit of its virus fear shine overnight. The yellow metal shrugged off expected inflation numbers.

The Department of Commerce reports its Core Personal Consumption Expenditures Index increased 0.2% in December which was inline with analysts’ predictions. Annual core inflation rose 1.6%, a slight bump up from November’s annual reading of 1.5%. Continue reading…


Gold Steady Early Wednesday

Gold Steady Early Wednesday

Gold steady early Wednesday as investors sought direction amid uncertainty about the impact on the global economy of the coronavirus, which is rapidly spreading beyond China, and on economic policy from the Federal Reserve. Continue reading…


Gold Rises On Coronavirus Fears

Gold Rises On Coronavirus Fears

Gold rises on coronavirus fears, with the yellow metal hitting a two-week high early Monday as the virus continued to spread beyond China, adding to investors’ nervousness about a global health emergency that could disrupt the world’s economy. Continue reading…


Gold Off a Bit

Gold Off a Bit

Gold off a bit early Wednesday as the dollar strengthened, and investors seemed to dismiss concerns that a new coronavirus that began in China would cripple the global economy. Spot palladium decreased from a record yesterday, but has regained some ground this morning. Continue reading…


Gold Rose Early Wednesday

Gold Rose Early Wednesday

Gold rose early Wednesday as investors who questioned the effectiveness of a phase-one trade deal between the U.S. and China leaned on the yellow metal as a hedge against uncertainty. An additional boost was felt this morning when the Producer Price Index (PPI) missed expectations. Continue reading…


Gold Bulls Attracted To The Dip

Gold Bulls Attracted To the Dip

Gold bulls attracted to the dip this morning. Gold had slipped overnight as equities soared to new record highs. The yellow metal regained some ground after the release of U.S. employment data this morning, before slipping back. Then Gold bulls stepped back in erasing the dip. Continue reading…


Gold Surged On Iran Tensions

Gold surged on Iran tensions, heading above $1,600 an ounce for the first time in almost seven years after two bases housing U.S. troops in Iraq were attacked by Iran, worsening geopolitical tensions. Palladium reacted by hitting a new record high.This morning’s positive U.S. employment numbers have slightly impacted the yellow metal. Continue reading…


2019 Holiday Hours

Dillon Gage wishes you and your family the happiest of holiday seasons.

The following is our schedule for the 2019 holiday season:

  • Dec. 24th: Trading, Refinery & FizTrade close at Noon Central (CT).
  • Dec. 25th: Dillon Gage Trading & Refinery closed. FizTrade opens at 5pm CT
  • Dec. 26th: Normal trading and refinery hours resume
  • Dec. 31st: Trading, Refinery and FizTrade close at Noon CT.
  • Jan 1st: Dillon Gage Trading & Refinery closed. FizTrade opens at 5pm CT
  • Jan 2nd: Normal trading and refinery hours resume

Gold Trades Above $1,500

Gold Trades Above $1,500

Gold trades above $1,500 at seven-week high on Comex early Friday, heading for its best year since 2010.

The yellow metal has advanced for the past four sessions, even amid an equities rally and optimism over a phase-one U.S.-China trade accord, which would typically be bearish factors. Gold climbed throughout the year as a hedge against uncertainty when it appeared that the negotiations had stalled. Continue reading…


Gold Rises In Light Trading

Gold Rises In Light Trading

Gold rises in light trading ahead of the Christmas holiday as investors await more information on a U.S.-China trade accord.

The two sides announced that an agreement had been reached the week before last, but details have so far been scarce. Gold climbed throughout the year when it appeared the negotiations had stalled and is still on track for its best year since 2010, mainly because of the tariff war. The precious metal has been largely rangebound since news of the accord broke, as gold’s appeal as a hedge against uncertainty diminished.

China cut import tariffs on $389 billion in goods including food, consumer items and manufacturing parts on Monday, Bloomberg reported. The move, announced by the Finance Ministry and set to go into effect Jan. 1, isn’t directly linked to the U.S.-China trade agreement, but it supports claims by the Chinese government that it’s further opening its economy, according to the report.

February gold futures declined 0.2% Friday and slipped just 30 cents last week to settle at $1,480.90 an ounce on Comex. Thursday, the futures settled at the highest level in more than two weeks. Currently, the February contract is up to $1486.10.

Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.3% Friday to 885.93 metric tons, Reuters reported. And speculators increased their bullish positions in both gold and silver contracts in the week ended Dec. 17, according to the Commodity Futures Trading Commission’s Commitments of Traders report, released Friday.

Silver rose 0.4% Friday to settle at $17.22 an ounce on Comex. The March futures contract advanced 1.3% last week.

Precious metals looked less attractive to some investors last week as equities traded near all-time highs. The Standard & Poor’s 500 reached a new record above 3,200 for the first time Thursday, closing at 3,205.37, and the index posted its biggest weekly gain since September on Friday.

Palladium rebounded early Monday after declining in the latter part of last week after reaching a record above $2,000 an ounce on Tuesday. There’s a global supply crunch for the metal used in autocatalysts. Spot palladium fell 3.9% last week.

Spot platinum slipped 1.9% last week.

Most markets around the world will be closed Wednesday for Christmas, and many — including Australia, Canada, Germany and the U.K. — will also be closed Thursday. The economic calendar is light heading into the holiday week, but U.S. weekly jobless claims are scheduled to come out Thursday, with Japan’s retail sales and industrial production set for Friday, along with Chinese industrial profits.

 

Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Gold Drifted Lower

Gold Drifted Lower

Gold drifted lower early Friday on signs of a U.S.-China trade accord and as investors awaited U.S. GDP data to gauge the strength of the economy. Palladium remained near a record high reached Tuesday. Continue reading…


American Eagle Sales as of 12/19/2019

American Eagle 2020 YTD Sales

The following chart includes the year to date totals for 2019 Gold and Silver American Eagle Sales from the U.S. Mint as of 5pm on December 5th. The chart also shows the difference in sales from our last report on December 6th.

Dillon Gage is authorized t0 purchase gold, silver, platinum, and palladium bullion directly from the U.S. Mint, as well as all the world’s major mints.
Continue reading…


Gold Fairly Steady

Gold Fairly Steady

Gold fairly steady early Wednesday after rising just 10 cents Tuesday as investors awaited details of a trade deal. Meanwhile, spot palladium retreated after reaching an all-time record high above $2,000 an ounce. Continue reading…


Gold Hanging Tough

Gold Hanging Tough

Gold hanging tough this morning, recovering some of the turf it lost late yesterday as uncertainty over the U.S.-China trade standoff and the Brexit timetable diminished, causing equities to rally and reducing the yellow metal’s attractiveness as an investment hedge. Continue reading…


Gold Steady on Inflation Data

Gold Steady on Inflation Data

Gold steady on inflation data this morning as the markets await today’s policy statement from the Federal Reserve and amid speculation on whether the Trump administration will impose a new round of tariffs on China as scheduled on Sunday. Continue reading…


Gold Modestly Up

Gold Modestly Up

Gold modestly up this morning on less than positive economic news out of China. The yellow metal regained some of the ground it lost after slipping Friday on a better-than-expected U.S. jobs report.

The positive job number reduces the urgency for a trade accord with China and helps justify a Federal Reserve decision — widely expected Wednesday — to keep interest rates unchanged. Continue reading…


Gold Slips On Jobs Report

Gold Slips On Jobs Report

Gold slips on jobs report this morning, taking a bit of shine off a positive week. Lingering uncertainty over the potential U.S.-China trade deal kept the yellow more attractive as a hedge over the past few days.

This morning’s non-farm payroll numbers surged, up 266,000. The expected increase was 180,000. This is the biggest jump since January. The end of the GM strike boosted employment in motor vehicles and parts by 41,300, part of an overall 54,000 gain in manufacturing. Continue reading…


Gold Near One-Month High

Gold near one-month high

Gold near a one-month high as the yellow metal fluctuates through the early morning hours driven by disappointing job numbers and new hopeful trade comments from President Trump.

Gold rose significantly on Tuesday after U.S. President Donald Trump said that it might be better to wait until after the 2020 presidential election in November to sign a trade deal with China. Continue reading…


Gold Rises On Weak ISM

Gold rises on weak ISM data

Gold rises on weak ISM data this morning. After drifting a bit lower early this morning on an equities rally, the yellow metal got a shot in the arm and the Dow took a hit when the ISM Manufacturing PMI dipped to 48.1 for November. That’s below an estimate of 49.4 and under October’s 48.3. Continue reading…


FizTrade Mobile App Upgrades

FizTrade Mobile App Upgrades

The FizTrade mobile app puts the power of Dillon Gage’s award-winning Physical Precious Metals Trading platform in the hands of iPhone users with 24-hour trading, up-to-the-minute order status updates, real-time bid/ask pricing and management of the fulfillment process.

Fiztrade Mobile is the fastest and most efficient way for Dillon Gage customers to place trades, track orders, and receive shipment notifications in real time; no matter where they are in the world.


Additional features have been added to FizTrade Mobile app’s robust platform to include:

  • Pop-up notifications when orders are processed, shipped and when purchase orders are received
  • iPad-compatible navigation
  • Seamless checkout

Coming soon:

  • Pop-up notifications when orders have been released to the fulfilment warehouse
  • Purchase Order notifications when buyback products have been received
  • Ability to customize notifications and opt in or out of specific alerts


Gold Holding Above $1,450

Gold Holding Above $1,450

Gold holding above $1,450 despite stumbling on strong economic data released this morning. Three new pre-holiday reports show positive signs including a drop of 15,000 in U.S. weekly jobless claims, better-than-expected growth in the U.S. third quarter GDP (up an annual rate of 2.1% versus the forecast 1.9%), and the U.S. Commerce Department report showed an increase of .6% in U.S. durable-goods orders for October, that’s up from September’s revised 1.4% drop. Continue reading…


Thanksgiving Holiday Hours

Thanksgiving Holiday Hours

The Dillon Gage family wishes you and yours a very Happy Thanksgiving!

Dillon Gage will have the following reduced hours over the holiday weekend.

FizTrade:
• Thu. Nov. 28th: Open all day, EXCEPT closed from Noon to 5 pm CST
• Fri. Nov. 29th: Closes at 12:45 pm CST
• Sun. Dec. 1st: Opens at 5 pm CST
Continue reading…


Gold Slipped Earlier Monday

Gold Slipped Earlier Monday

Gold slipped earlier Monday to a one-week low amid signs that the U.S. and China were edging closer to a trade deal.

Equities and the dollar rallied, making gold less attractive as an alternative investment. Gold prices skyrocketed earlier this year as a hedge against uncertainty as the U.S.-China trade standoff worsened. Continue reading…


Gold Firmed Early Friday

Gold Firmed Early Friday

Gold firmed up early Friday amid doubts over whether the U.S. and China will manage to sign a trade deal this year.

Reuters reporting that Chinese President Xi Jinping said his country wants to work out an initial trade pact with the United States, but is not afraid to retaliate if necessary. Continue reading…


Gold Rose On Trade-Deal Fears

Gold Rose On Trade-Deal Fears

Gold rose on trade-deal fears early Wednesday and have now leveled off in anticipation of the FOMC minutes which will be released this afternoon.

U.S. President Donald Trump renewed a threat of tariffs on Chinese imports on Tuesday. “If we don’t make a deal with China, I’ll just raise the tariffs even higher,” Trump said during yesterday’s Cabinet meeting, according to Reuters. Continue reading…


Gold Slips On U.S. Retail Data

Gold Slips On U.S. Retail Data

Gold slips on U.S. Retail Data released this morning for October that showed a rebound.

While October shopping was up, consumers cut back on big ticket items. Commerce Department reports retail sales increased 0.3%, primarily on motor vehicle purchases and higher gas prices. This reversed September’s 0.3% drop and topped a forecast rise of 0.2%.

Gold dipped yesterday after White House Economic Adviser Larry Kudlow said trade talks between the U.S. and China for phase one of a trade agreement were near the final stages. “We are coming down to the short strokes,” he told reporters late Thursday, according to Bloomberg. Continue reading…


Gold Shrugs Off Inflation Data

Gold Shrugs Off Inflation Data

Gold shrugs off inflation data this morning as the U.S. Consumer Price Index shows a 0.4% rise for October according to the U.S. Labor Department. Consensus forecasts were calling for a rise of 0.3% following September’s flat number. The October number marks the highest monthly increase since March. Continue reading…


Gold Enjoyed A Bump Up

Gold Enjoyed A Bump Up

Gold enjoyed a a bump up this morning on continued trade uncertainty over the U.S.-China trade accord and disappointing Chinese producer price data over the weekend.

The yellow metal settle at $1,462.90 an ounce Friday on Comex. It rose to $1,467.90 earlier this morning, but is back to $1,461.30. Continue reading…