Gold Hits Four Month High And Equities Open Much Lower

The Market Gage - Dillon Gage's Precious Metals Newsletter

Wall Street’s frustration with Washington’s gridlock gives gold a boost this morning. Equities to open much lower as retail investors scramble to put their stop loss orders in on the Dow Industrial’s open. Taking some profits off the table could be a wise move right now.

Last night when I was watching the action in the Far East, it was apparent that gold and silver would be opening stronger here in the States. The activity in the dollar was brisk, trading lower versus other world currencies. Currently the dollar index is trading at 98.89, down 88 basis points which helps the rally in gold.

Also giving gold a boost are the World’s Ten-Year Bond yields which are all lower on the day.
Continue reading “Gold Hits Four Month High And Equities Open Much Lower” »


Gold, Dollar and 10-year Treasury Bills All Locked In

The Market Gage - Dillon Gage's Precious Metals Newsletter

President Trump flexing his muscle and demanding a vote today on his health care bill. We all know the President hates to lose and if he doesn’t get his way he will move on to tax reform.

The equity market likes tax reform and in my opinion has little interest whether the health care bill passes or not. Case in point the equity market at 9:30 is showing a positive opening.

On the other hand Gold for the time being seems to be locked in at these current levels. The dollar and Ten-Year Treasury yields are also locked in their levels with little or no change on the day. So the price of gold and silver just sits here.

Frustration is the word I constantly hear from most gold dealers. One thing I will not attempt is to make a phone call to any of my Wall Street trading friends to ask their opinion on the market. I don’t want to lose their friendship.

Boring as it seems, the CME gold and silver volumes seem to have healthy activity day in and day out.

So there is still good interest in our market, unfortunately the lack of any news reduces the volatility, which in turn keeps the big players out of the market for the time being.

We at Dillon Gage constantly monitor all the news services around the globe every day to keep our readers informed on any potential news stories that affect the precious metals markets. However there are some days where there just isn’t much to share, no matter how hard you look, and today is one of those days.

I can talk about Durable goods orders released today or what we can expect to hear from San Francisco Fed President John Williams or St. Louis Fed President James Bullard or New York Fed President William Dudley who are all scheduled to speak to the media today. All my readers know what I think about Fed Presidents speaking between Fed meetings, so yes I’ll listen, but I really don’t see any point in doing so.

As my mom always told me, where there is life there is hope. So I’ll keep the window open with my binoculars in my hand scouring the world for some news that will get our market moving again.

I wish you all a wonderful Friday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


American Eagle Sales as of 3/23/17

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on March 23rd. The chart also shows the change in sales from 3/16/2017 which we reported last Friday.

Gold
Coin Sales in oz. /#coins + from 3/16/2017
One oz.
122,000
122,000
8,500
8,500
Half oz.
12,500
25,000
000
000
Quarter oz.
10,500
42,000
000
000
Tenth oz.
19,000
190,000
500
5,000
Total
164,000
379,000
9,000
14,000
Silver
Coin Sales in oz. /#coins + from 3/16/2017
One oz.
7,637,500
7,637,500
795,000
795,000

Gold Hits 3-Week High on President’s Health Care Comment

The Market Gage - Dillon Gage's Precious Metals Newsletter

Gold yesterday settled close to a 3-week high and was up for the fourth day in a row.

What pushed the up button yesterday were comments made by President Trump after his Town Hall meeting with Conservative Republicans. As President Trump exited the meeting a reporter asked if he believed that he has all the votes needed to pass the Health Care Bill on Thursday, he expressed a not so sure response. At that point stocks headed south falling 237 points for the day and gold rallied double digits. The concern for equity investors is that the chance of a derailment of the Health Care Bill would stall the expected tax cuts, which in turn would slow down the economy and then reduce the chance of further rate hikes.

Case in point: On that news the Dow took a bath yesterday and Gold found some new buying interest.

Looking at the factors that affect the price of gold this morning is a slightly stronger dollar and softer Ten-Year Bond Yields around the globe keeping the price of gold virtually unchanged.

As I indicated in Monday’s comment, the markets seem to be in suspended animation looking for some news to grab onto to give some promise of a future direction in Equities and the price of Gold. Just look at how ONE comment yesterday changed impacted the markets.

As one Wall Street Gold trader put it: “I’m hesitant getting back into the market again, as one tweet from the President can have an adverse effect on the dollar or one comment by a Fed President can have a major impact on the price of Gold. I just can’t take that risk right now. I’d rather wait for things calm down. The question remains when?” This comment gives everyone a good idea of the fear factor in the market. Any unexpected comment from any official can create a market firestorm.

Yes, I think we all can agree that the equity market has had a great run since the election and Gold has held up pretty well with all the negative news of higher interest rates and a stronger dollar. But now with all the squabbling in Washington over Obamacare and future tax cuts; and relatively no movement to speak of (looks like he doesn’t have the votes to pass the bill tomorrow), the markets are now questioning if it is at all possible that a new Health Care Bill and tax cuts (both corporate and individual) can be in place by Aug 31st as the Republicans had promised.

No matter what party you call your own, it appears that this is only the beginning of total gridlock coming down the pike in Washington. Anyone surprised?

You can be sure both party’s futures are hanging on these bills being passed. The country is watching very closely.

Just ahead are billboards that say, watch out for North Korea, Iran and Russia. Going forward, anyone of them could put a land mine in the road totally stopping any Trump agenda.

So, looking at the issues, I for one must question the ability of the equity markets to continue their rally without a quick passage of all the bills that the Republicans had promised. With all that’s going on in Washington one could also take the stance that we probably can expect that Fed Chairwoman Janet Yellen will keep her dovish stance. If that occurs, then gold has a good chance of moving higher. Let’s not forget that just a year ago the Fed Presidents had called for 5 rate hikes and we got one. What do you think will happen to future rate hikes if Washington is out of control? If President Trump’s agenda fails, where will the positive data come from supporting the next rate hike?

If North Korea becomes more of a problem or the investigation starts to show more Russian involvement in our country’s affairs or if anyone of the President Trump’s personal cabinet allies have issues, both houses will have their hands full.

If any or all of this plays out, the financial road to success could be paved with GOLD.

Have a wonderful Wednesday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


FLASH GAGE – Dow Drops and Gold Climbs

The Dow is down over 180 points at the time of this report this morning after being in positive territory early in the day. President Trump had a town hall session with the Conservative Republicans this morning who wanted to add amendments to the Health Care Bill before indicating they might be on board helping pass the bill on Thursday.

As President Trump exited the meeting he expressed a not so sure response to the question
asked by a reporter if he believed that he has all the votes needed to pass the Health Care Bill.

At that point stocks headed south and gold rallied. A derailment of the Health Care Bill stalls the expected Tax cuts which in turn slows down the economy which in turn reduces the chance of further rate hikes. Case in point: Gold is now up nine dollars after trading lower in the early morning hours.

Have a wonderful Tuesday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Gold Up A Bit On Slightly Weaker Dollar

The Market Gage - Dillon Gage's Precious Metals Newsletter

We start the week with gold up just a little, off of a slightly weaker dollar and softer treasury yields.
The prices of both gold and silver seemingly in suspended animation looking for some news to give the price a direction to head into.

One might not argue that the equity markets are experiencing the same dilemma.

Wall street gold traders continue to be on the sidelines because of the lack of volatility.

Overnight both gold and silver ETFs showed redemptions.

Without any other news to report let me share with my readers the reason, in my opinion, we are in this situation in the first place.

At least there is one person at the Fed that makes some sense.

Before I reveal that person’s name, I have to share with my readers my frustration. What I don’t understand is how the Fed Chairwoman can say, “the data has NOT noticeably strengthened,” and at the same time say that, “future rate hikes will be data dependent” ? She then followed up with, ”there will be THREE rate hikes in 2017.” Can someone tell me what I’m missing?

These comments move the price of gold in unpredictable ways. Just look at last Wednesday. Yes we all expected a 25 basis interest rate hike. Ok, no argument there. But where did the market get the impression that four rate hikes were in order? Is it possible the market was looking forward to a continuing equity rally in 2017? Or did the market just base it on how many more Fed meetings this year that one could anticipate a rate hike? Or did the market get it from one of the Fed voting members at one of their “why in the world are you saying anything about future rate hikes” press conferences?

As soon as the Chairwoman revealed a dovish tone in her comments the price of gold reacted as IF there will be “NO” more rate hikes this year and traded up $30 dollars on the news. So in reality, her comments caused a firestorm. The shorts, and there were many who read the tea leaves so-to-speak, had to cover in an heartbeat. How can any trader or investor predict these kind of market movements?

What is this world coming to? What ever happen to supply and demand issues that used to move the price of gold. Has the media and politics taken over so much that a smart, informed investor has become clueless and helpless, set up by the FED to dictate whether their investment will make money or not?

Before I give you the name of the only person who seems to have any clue, let me give them a fix to this problem. To give every trader and investor a level playing field to conduct their trading strategies, here is my take on what should be done:

  • First and foremost stop immediately any voting or non-voting members between FED meetings from sharing their options to the media at a press conference or any other function for that matter. Basically imposing a gag order on all members.
  • Second, let the Fed minutes speak for themselves. That would work well for everyone to understand what really happened behind closed doors.
  • Third, let the Chairwomen be the only person at the FED to share the opinions of all after any scheduled Fed meetings. And last tell the FED not to be too concerned about their reputation, it cannot
    get any worse.

Now, thank you for waiting. The person I’ve been alluding to is…Neel Kashkari, Minneapolis Federal Reserve Bank President. He was the lone dissenter at the last Fed meeting. His position was to hold rates steady because, as he put it, “the U.S. economy is still falling short on employment and inflation.” What makes total sense to me is where he indicated the Fed should wait to raise rates until it publishes a detailed plan for how and when it will reduce its 4.5 TRILLION balance sheet. One doesn’t have to have a degree in accounting or economics to believe that this statement makes sense. He also indicated that inflation is still short of the Fed’s mandate of 2 percent and that the labor market is still showing signs of slack, so keeping the rates steady would have been the appropriate move.

One must know that any change in rates has a profound effect on all Americans. For the ones trying to buy their first home or for the ones trying to pay down their credit card debt. Before any decision is made, we should be at close to or full employment and see wage growth for all. From the minimum wage worker to the average American trying to get by from paycheck to paycheck, these considerations should be first and foremost. Yes it might sound like I’m running for political office, but if the Fed would close all the text books and look out the window they might have a better understanding where America is today.

I feel better now.

Have a wonderful Monday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Gold Holds Its Breath While All Eyes Are On G20

The Market Gage - Dillon Gage's Precious Metals Newsletter

All eyes on the G20 meeting of the Finance Misters and Central Bank Governors which starts today in Germany.

Ahead of the G20 meeting, some European leaders have expressed concerns about the Trump administration plans for removal of some regulations which they see necessary for global banking stability.

Representing the U.S. for the first time will be President Trump’s handpicked Treasury Secretary Steven Mnuchin, who is expected to put pressure on some countries to increase the value of their currencies. The Treasury Secretary is carrying a message from our President that countries that export to the U.S. must stop their practice of keeping their currencies weak against the dollar for their own gains which in turn gives them an unfair trading advantage.

Data here in the states released today at 9:15 is industrial production and capacity utilization and followed at 10 am by consumer sentiment and leading indicators. Unless some surprises are revealed, I expect the price of gold to be pretty steady ahead of the news out of the G20 meetings today and over the weekend.

A mixed bag of items to share this morning. The dollar showing modest gains and the U.S. ten-year treasury bond yields are off slightly. The Gold ETFs saw small redemptions.

Far East gold traders, as well as our Wall Street Gold traders, indicate that at this point they have little interest in putting on any positions. Most have indicated they will wait for some news and direction in the price before jumping back in.

So the price of Gold just sits in limbo until some news emerges as traders and investors await patiently for any indication of which way gold will be headed next.

For those following the technical levels, the gold resistance levels are at $1,234 and $1,248, while silver is at $17.48 and $17.72.

Have a wonderful Friday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


American Eagle Sales as of 3/17/17

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on March 16th. The chart also shows the change in sales from 3/9/2017 which we reported last Friday.

Gold
Coin Sales in oz. /#coins + from 3/9/2017
One oz.
113,500
113,500
2,500
2,500
Half oz.
12,500
25,000
500
1,000
Quarter oz.
10,500
42,000
500
2,000
Tenth oz.
18,500
185,000
2,000
20,000
Total
155,000
365,000
5,500
25,500
Silver
Coin Sales in oz. /#coins + from 3/9/2017
One oz.
6,842,500
6,842,500
220,000
220,000

Gold Up on weaker dollar – driven by Fed Dovish Tone

Yesterday Janet Yellen stopped short of predicting four rate hikes this year, weakening the dollar and treasury yields which in turn gave gold a Boost. She stated policy is not set in stone and is totally dependent on developing economic data.

When the news came out at 2pm yesterday, Gold investors took that statement as a buying opportunity. The gold market was very nervous that the Feds would announce an additional rate hike to four in 2017 and when the Chairwoman exhibited a dovish tone and indicated they are calling for only three, gold rallied $ 19.00 quickly. Nervous shorts ran for cover especially when broke thru the $1,215 level.

Retail sales are still weak and we all await on the next GDP results to be released on March 31st. So with growth in the economy still in question this gives doubt that her three rate hikes are a sure thing. This should support the price of Gold in this area and bring in new buyers into the fold.

The Chairwomen also said that its inflation target is still 2 percent and can vary on both sides of that number.

What doesn’t make any sense to me is how Ms. Yellen can call for three rate hikes this year and at the same time declare that future rate hikes will be data dependent. Maybe she has a crystal ball. I just don’t get it.

Gold this morning finding new investors pushing the price up over thirty dollars on the day.

The Dutch election didn’t go as the gold market hoped for, nonetheless Gold still looking strong this morning.

I expect this Gold rally to lose some of its steam as I believe you have seen the highs at $1,234 in the April futures contract today.

For the third day in a row, gold ETFs have seen inflows into the funds. Three day total increases by over 450,000 ounces.

Some Wall Street gold traders took it on the chin on this last move and for the ones I spoke to are out of the market for the time being.

What comes to mind is all the plans of the new administration to include the costs of infrastructure, military spending, replacing Obama care, tax cuts both corporate and individual, increased costs of entitlements as we see 10,000 baby boomers retiring every day. Where will we find the money to cover these “massive” expenditures without dramatically increasing the debt ceiling .

What baffles me is if this all comes into play inflation will be out of control and the Fed will be once more behind the curve trying to explain their position.

So, only time will tell how this plays out. In the meantime the next move in the gold market is anyone’s guess.

Have a wonderful Thursday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Lots of Gold-Impacting News to Share

The Market Gage - Dillon Gage's Precious Metals Newsletter

A lot of news to share with you this morning.

All eyes on the Fed today with the results on interest rates to be revealed at 2pm ET. The street expecting a .25 basis rate hike. The CME Watch tool has the odds of a rate hike at 90.8 percent this morning. All will be listening to the Chairwoman’s comments at the press conference after the announcement. Her view on the economy and how many more rate hikes she expects this year are on the minds of all traders and investors.

It would be interesting to hear if there were any voting Fed members who wanted to raise rates 50 basis points at this meeting to show the world they are ahead of the curve. Any surprises will have a profound effect on all the global markets.

Continue reading “Lots of Gold-Impacting News to Share” »


Gold Treading Water To Start Week

The Market Gage - Dillon Gage's Precious Metals Newsletter

The price of Gold starts the week treading water above the $1,200 dollar level. Not helping the holders of long positions in Gold were the 300,000 ounces redeemed overnight in the Gold ETF arena.

Keeping Gold afloat is a slightly weaker dollar and softer 10-Year Treasury Yields around the globe. The U.S. is the only one that has their Ten-Year Yield Bonds in positive territory this morning.

Commitment of traders report from last week showed funds reduced their long positions by 17,000 contracts and added 13,000 new shorts to their positions.

Levels of support in Gold not seen until we test the $1,182 level in the spot price. Silver support not till $16.68.

The Wall Street Traders I spoke with this morning are still content with their short positions. If you remember last week they indicated that going short at the $1,210.50 level which was a 50 percent retracement level from the highs.

All eyes on the Fed Wednesday as the probability of a rate hike still standing at 88.6 percent according to the CME Watch tool indicators. One must believe a 25 basis rate hike is a sure thing at Wednesdays meeting. What the street is waiting for is the press conference after the Fed announcement with Chairwomen Janet Yellen to hear her thoughts and comments on the economy and the possibility of future rate increases.

I expect a couple of quiet trading sessions till then.

Have a wonderful Monday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Lots Of News Headlines Impacting Precious Metals

The Market Gage - Dillon Gage's Precious Metals Newsletter

Here are the Friday morning headlines we are watching that are impacting precious metals.

Overnight, selling out of the Far East brought the yellow metal down to $1,194.50 in the April CME Futures contract.

This morning, gold now seen gaining momentum, reversing the most recent sell bias indicators trading over the $1,200 dollar level this morning.

The reason for the recovery this morning is a weaker dollar and softer ten-year treasury yields.

The strongest component in the gold price is the action in the U.S. dollar vs. other world currencies.

Continue reading “Lots Of News Headlines Impacting Precious Metals” »


American Eagle Sales as of 3/10/17

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on March 9th. The chart also shows the change in sales from 3/3/2017 which we reported last Friday.

Gold
Coin Sales in oz. /#coins + from 3/2/2017
One oz.
111,000
111,000
3,500
3,500
Half oz.
12,000
24,000
000
000
Quarter oz.
10,000
40,000
000
000
Tenth oz.
16,500
165,000
1,000
10,000
Total
149,500
340,000
4,500
13,500
Silver
Coin Sales in oz. /#coins + from 3/2/2017
One oz.
6,622,500
6,622,500
280,000
280,000

FLASH GAGE- European Central Bank Pres. Comments Give Gold A Little Hand

As we monitor all news from around the world, today we are watching live the press conference of ECB President Mario Draghi. Here are the headlines:

The European Central Bank announced this morning no change in their benchmark interest rate. Right after the news, gold caught a bid and the selloff of the yellow metal stalled.

ECB President Mario Draghi said he would continue his asset-buying program. He seems to be hedging himself, giving the impression he’s not sure on future economic conditions in the European community. He said there are so many geopolitical issues facing many countries in the EU.

This is a sharp contrast to what’s happening here in the states.

His comments seemed to have strengthened the Euro and weakened the dollar temporarily. He says his goal is to strengthen the Euro and make it more resilient versus
other world currencies.

I expect after this press conference is over, the dollar will recover and so will the selloff in the precious metal markets.

Have a wonderful Thursday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Gold Under Pressure from a Stronger Dollar Index

The Market Gage - Dillon Gage's Precious Metals Newsletter

The onslaught of negative news continues to put pressure on the metals this morning. The stronger dollar index now over 102. Stronger yields in the U.S. ten-year treasuries also hurting Gold. So much so that ten-year bond yields around the globe in countries such as Germany, France and Italy, all are showing a good increase in their 10-year bond yields.

Now that the 50-day and 100-day moving average has been violated, some Wall Street gold traders have indicated that they will take on a short position in gold and silver. They are now looking for the selloff to accelerate with hopes that the $1,200 dollar level in gold and the $17.00 dollar level
will be tested some time soon. These guys typically don’t like to hold a position too long unless the momentum is in their favor. If this market reverses they will cover in a heartbeat.

Continue reading “Gold Under Pressure from a Stronger Dollar Index” »


FLASH GAGE – Gold Under Continued Pressure

Gold under continued pressure this morning with the price stopping right at the next level of support at $ 1215.80 in the April contract.

The next level we all should be concerned with if we head in that direction will be the fifty and one hundred day moving average at $ 1210 spot area. I expect gold sell stops to be placed just below that level.

Not helping the price of gold this morning are a slightly strong dollar and an up tick in the ten year US treasury yields.

On another note China reported for the fourth straight month that have NOT added any gold to their reserves.

Some Wall Street gold traders still on the sidelines for the time being but one guy said this
morning if we break thru the $ 1215 area he expects the market to test the support level I indicated above.

All this chatter about multiple rate hikes this year continue to chase away any long term buyers
from the market.

Have a wonderful Tuesday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Gold Maintains Against a Stronger Dollar

The Market Gage - Dillon Gage's Precious Metals Newsletter

After reaching a three week low in the price of gold on Friday, the yellow metal has rebounded nicely this morning. Despite all the news of higher interest rates and the stronger dollar, the price is still holding above the $1,230 area

Good news for the longs as on Friday at one point it looked like the market was going to test the 100-day moving average around the $1,218 area, but steady buying emerged when the market traded down to $1,223 in the April contract.

Continue reading “Gold Maintains Against a Stronger Dollar” »


Pressure On Gold Continues this Morning

The Market Gage - Dillon Gage's Precious Metals Newsletter

Continued pressure hitting the price of gold and silver this morning as the realization is setting in that more than one rate hike is a good possibility in the coming months. The price of gold still above the 100-day moving average at $1,218.60 spot and above, which is where Wall Street traders last bought in at $1,220.00. If we break thru these two levels, I expect the selling to accelerate and possibly test the $1,200 dollar level. My hope is that some good news enters the market place and we consolidate here

Always watching the CME Watch tool odds. Today’s odds on the board for a rate hike in March stand at 77.5 percent. I believe the street already has it as a done deal.

Continue reading “Pressure On Gold Continues this Morning” »


American Eagle Sales as of 3/2/2017

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on March 2nd. The chart also shows the change in sales from 2/23/2017 which we reported last Friday.

Gold
Coin Sales in oz. /#coins + from 2/23/2017
One oz.
107,500
107,500
1,500
1,500
Half oz.
12,000
24,000
000
000
Quarter oz.
10,000
40,000
500
2,000
Tenth oz.
15,500
155,000
1,500
15,000
Total
145,000
326,500
3,500
18,500
Silver
Coin Sales in oz. /#coins + from 2/23/2017
One oz.
6,342,500
6,342,500
450,000
450,000

FUN FLASH GAGE – Are We Seeing an Equities Bubble?

Can I be so bold today and use a comment made by Alan Greenspan in a speech years ago and equate our equity markets with the so-called DOT-COM bubble as a market of “Irrational Exuberance.” Ok I hear some of you yelling back at me. You are quite pleased looking at your stock accounts and 401k statements.

I get it.

But let me share with you some statements from people on Wall Street who have a lot to say.

I asked a friend of mine who is a commodity fund manager, “I’m looking at the overnight inflow into all four Precious Metal ETF Funds. With the Dow up over 300 points yesterday and all the money that has been on the sidelines now heading into equity markets, where is the interest coming from for the ETFs?”
Continue reading “FUN FLASH GAGE – Are We Seeing an Equities Bubble?” »


Gold Sell Off After Fed Presidents Comment on March Rate Increase

The Market Gage - Dillon Gage's Precious Metals Newsletter

Gold selling off this morning after the market absorbs a few Fed President’s comments that they are seriously considering raising rates at the next Fed meeting in March.

New York Fed President William Dudley, who is called by some “Janet Yellen’s right hand man,” indicated yesterday that “the case for monetary tightening has become more compelling.” All four Fed presidents who spoke Tuesday indicated that they will consider raising rates at the next Fed meeting.

The price of gold sold off and the action overnight in the far east followed suit. The market is starting to really believe a rate hike will happen in March as indicated by the CME Watch Tool predictor. Yesterday before the Fed Presidents started speaking the chance of a 25 basis point rate in March was only 36 percent. Looking at the CME Watch Tool this morning the possibility of a 25 basis rate hike in March now has jumped up to almost 69 percent.

Continue reading “Gold Sell Off After Fed Presidents Comment on March Rate Increase” »


Another Greek Bailout Plan? What Could Be Impact on Gold?

The Market Gage - Dillon Gage's Precious Metals Newsletter

Recently I have been sharing news about the troubled banking system facing Italy, but it’s time to once again to address the problems facing Greece.

Earlier in February while speaking in front of his party’s central committee, Greece’s Prime Minister Alexis Tspiras sent some choice comments to the German Finance Minister. He said he wasn’t pleased with the “constant aggressiveness” against Greece and his “contemptuous remarks” toward the Greek people.

He also took a shot at the International Monetary Fund, as he put it, for not telling the EU the truth about the requirements for an economic recovery for his country. After many bailouts, Greece is now looking for a another.
Continue reading “Another Greek Bailout Plan? What Could Be Impact on Gold?” »


Gold Still Climbing Despite Dow Records

The Market Gage - Dillon Gage's Precious Metals Newsletter

The price of gold continues to march forward even in the face of Fed Presidents’ comments calling for three rate hikes this year and the Dow setting a new record for the tenth straight day.

Also setting a new record for 2017 are inflows into the Gold ETFs, sitting at 65,321,062 ounces being held.

Far East Gold traders buying Gold overnight following their American counterparts. One Wall Street Gold trader I spoke with this morning indicated that at the 200-day moving average mark he will take off all of his gold position that he has been holding since the $1,220 level as he sees this level around $1,261 spot to be the next HARD level of resistance to break thru.

A lower dollar index and softer ten year yields helping gold along.

I can’t disagree with my trader friend, taking profits here, as I believe this market needs a breather and I expect that will come today with the dollar strengthening and slightly stalling the gold rally temporally.

In the event the 200-day moving average level is penetrated, the next soft level of resistance is $1,265 and nothing till $1,292 after that.

The price of silver is just following the rally in gold. Some dealers reporting lowering premiums for some silver products that they are overstocked with just to move some inventory.

Have a wonderful Friday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


American Eagle Sales as of 2/23/17

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on February 23rd. The chart also shows the change in sales from 2/16/2017 which we reported last Friday.

Gold
Coin Sales in oz. /#coins + from 2/16/2017
One oz.
106,000
106,000
3,500
3,500
Half oz.
12,000
24,000
500
1,000
Quarter oz.
9,500
38,000
500
2,000
Tenth oz.
14,000
140,000
000
000
Total
141,500
308,000
4,500
7,500
Silver
Coin Sales in oz. /#coins + from 2/16/2017
One oz.
5,892,500
5,892,500
205,000
205,000

FLASH GAGE – Gold Jumps to 3+ Month High

Don’t fall asleep at your post. You might just be missing some thing you would regret.

Here are some highlights to share with my readers that could be significant in the price of gold in the months to come.

If you looked at the price of gold the first of the year gold was trading at $1,148. Today we are $100 dollars higher. That’s an 8 percent increase in just 53 days.

Today if you look at the gold ETF, we have just set a new high holdings in the fund for 2017 at 65.2 million ounces. As I indicated in previous comments, I believe this it’s all commercial inflows, with very little retail investor interest. Most retail interest is still in equities.

So, I’ll ask the question again, what do the commodity fund managers know that we don’t?

French National Front political party leader Marine Le Pen has increased her lead in the first round of France’s presidential election. According to the polls, Ms. Le Pen is expected to win the first round of the presidential election with an estimated 27.5 percent of the vote. Doesn’t sound like a convincing number but in the first round there are many participants. If she wins there will be a runoff in May to see who will be the next President of France. The reason this is significant is Ms. Le Pen is a far right wing candidate who said if elected she will put together a referendum for France to exit the EU. Yes she is the underdog and she has an uphill battle in a socialist environment but who would have thought that Trump has a chance facing 15 candidates just a year ago?

Some Wall street gold traders seemed to have called this one correctly. If you remember in my previous comments, some indicated that they liked gold here and expected the rally to be slow going but to continue. They started accumulating gold at the $1,220 level and only would bail out if gold broke thru the 100-day moving average which at the time was $1,215.

My technical friends want some press also indicating that the next level of resistance in the price of gold isn’t till the $1,262 level.

Current CME WATCH TOOL indicates the chance of a rate hike at the next FOMC meeting in March is at 22 percent.

The Dollar Index now down 32 basis points on the day and the yield on 10 year treasuries are in negative territory both helping fuel the rally in gold.

Have a wonderful Thursday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


FLASH GAGE – As Fed Minutes Released Gold Dips, then Rebounds

Dillon Gage - Flash Market Update

SOME BIG IFS!

Fed minutes just released show that some officials expressed confidence that they can raise rates gradually. IF data on the labor market and inflation was in line with or stronger than their current expectations or IF the risks of overshooting the committees maximum employment and inflation objectives increased, a rate hike would be in order.

Having said that, they also indicated they had little concern about near-term inflation risks.

I found it very interesting that when the statement first came out, the electronic trading platform for futures gold sold off. Why I believe this occurred was as the words in the beginning of the statement were read by algorithm programs, it indicated higher rates would be on the door step. But as you finish the minutes it seems that there were conflicting comments giving the impression that a rate hike is not a sure thing at the next meeting. So as it all filtered thru gold rallied back four dollars from the low that occurred as the news filtered into the marketplace.

Now at the time of this report gold is virtually unchanged. If I may use a common saying , “GO FIGURE”.

Also as the comments were released the CME FED WATCH TOOL ODDS of a rate hike in March spiked from 18 percent to 26 percent and now after the market has absorbed all the information its back at 18 percent again.

This is why I keep pills for a headache handy in my drawer, because all the conflicting information gives me a migraine.

Do I know if this is exactly what happened? I don’t. But if you follow the pattern I don’t see how anyone can argue or take the other side of this debate. It just seems so obvious.

Some other highlights of the minutes:

  • MANY FED VOTERS SAW ONLY MODEST RISK OF SIGNIFICANT INFLATION
  • MANY FED OFFICIALS SAW HIKE `FAIRLY SOON’ IF ECONOMY ON TRACK
  • MOST FED OFFICIALS JUDGED GRADUAL RATE HIKE PACE APPROPRIATE
  • SOME OFFICIALS SAW DOWNSIDE RISKS FROM SOME POTENTIAL POLICIES
  • FOMC TO START BALANCE SHEET DEBATE AT UPCOMING MEETINGS

Have a wonderful rest of your day.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Precious Metals Markets Watching For Release of Fed Notes

The Market Gage - Dillon Gage's Precious Metals Newsletter

All eyes on the Fed today as they release the minutes from the January 31–February 1 meeting at 2 pm today.

Since the meeting, the usual “unnecessary” comments were shared by different Fed Presidents that a rate hike should happen sooner rather than later. Chairwoman Janet Yellen said last week that the Fed would consider rate hikes at upcoming meetings. Nonetheless, the odds of a rate hike at the next Fed meeting in March according to the CME FED WATCH TOOL today, before the minutes are released, is only at 18 percent.

Looking ahead, if they don’t raise rates in March, the chance of a 25 basis rate hike jumps to 40 percent at the May meeting and a 46 percent chance at the June meeting.

Hardly convincing numbers that a rate hike is imminent.

Some of the Wall Street gold traders I spoke with this morning are comfortable holding on to their long positions in gold as most believe higher prices are in the cards, but they believe it will be slow going. One trader said, “I’m long from the $1,220 area and the only thing to derail my position will be a surprise rate hike at the March Fed meeting. Otherwise I’ll just sit back and wait and see how it goes.”

I think the more important agenda for the Fed participants should be how and when do we start reducing the Fed’s balance sheet. If the Fed group believes the economy is on the path to a strong recovery, then raising interest rates and reducing the balance sheet should be a top priority. Just 8 years ago, during the financial times we’d like to forget, the Fed bought a huge amount of mortgage backed securities and Treasury Bonds to reduce long term interest rates, but I still want to see convincing economic data before I can cheer them on.

On another note, the Gold and Silver ETFs saw small inflows overnight.

With the Dow, Nasdaq and S&P kind of steady to a little higher of late, all markets including our markets are searching for some news to drive the future direction in prices.

During the next couple of months, Gold investors need to watch the upcoming EU elections very closely. I expect the landscape to be quite different after the German, French and Dutch elections are decided. As I indicated in my previous comments, the next tsunami in the price of gold will come from over the pond with the possible breakup of the European community. If Germany or France has upsets like the U.S. election just experienced, another EU defector could be right around the corner. That could be the end of the European community as we know it and cause a very interesting currency crisis. One would believe if this happens, gold will be the recipient of monumental gains.

One thing is for sure, before this happens the powers that be will fight tooth and nail to derail any breakup, but even if they stay together with tissue paper, the threat will be great enough to support much higher gold prices in the future.

Back from a short break in sunny Florida I wish you all a wonderful Wednesday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


President’s Day Dawn Finds Precious Metals Quiet

The Market Gage - Dillon Gage's Precious Metals Newsletter

Ready for Signals….

With President’s Day upon us, our markets are a little quieter than usual. But as this Monday dawns, all eyes appear to be on several members of the Federal Reserve, of which the heads of five regional Fed banks are slated to give speeches before Friday. As we well know, a few comments here or there regarding the rise or hold of interest rates seem to trigger quick activity in the precious metals market. The next scheduled full meeting of the FOMC is slated for mid-March. The FedWatch Tool from CME Group is indicating an 82 percent chance of no change in interest rates.

Inflow into Gold ETFs actually reversed course on Friday, with an outflow of 2.4 tons—the first such occasion in the last month.

We continue to look overseas to the European market for other indicators. Sovereign debt is as big a problem abroad as it is at home. Any changes in the Euro-Zone will have to be monitored this week.

At the time of this writing, spot prices for gold are currently holding steady at $1,238.60. Silver checks in at $18.04.

Have a wonderful week and stay tuned…

Disclaimer: This editorial has been prepared by a senior precious metals expert of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.

o


Wall Street Roaring & Precious Metals Still Making Noise

Walter is on vacation through 2/21/17. This post was written by a Dillon Gage Precious Metals Staff expert.

Steady as She Goes…

Champagne corks continue to pop all along Wall Street, as the stock market continued a record-shattering week in which all-time highs were achieved several days in a row. Overall from this same point last week, it measures out at just under a three percent overall gain. You’d have to go all the way back to 1991-92 for a similar streak. Whether it’s all attributed to the “Trump Bump” or not, things are looking pretty rosy in New York’s financial district.

Lately, metals haven’t been too bad off either, with a weakened and lower U.S. dollar boosting spot prices for gold. On the global stage, equity markets have stagnated a bit, leaving investors a tad bullish on precious metals as a safe haven. At last check this morning, the price of gold is holding above $1,240 per ounce.

The silver market continues to shine, with a seven-week uptrend in prices. Silver futures prices hit a three-month high yesterday and currently sit at $18.05 per ounce.

Found an interesting precious metals tidbit in the news yesterday—a Federal judge in Ohio has signed an order which would permit deep-sea treasure diver Tommy Thompson to reveal the location of 500 missing gold coins he retrieved from the sunken S.S. Central America, which went to the bottom of the sea in a hurricane in 1857. Thompson is currently being held in contempt of court for his silence on the matter. Interesting story all around.

Have a wonderful weekend and stay tuned…

Disclaimer: This editorial has been prepared by a staff member of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


American Eagles Sales as of 2/16/17

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on February 16th. The chart also shows the change in sales from 2/9/2017 which we reported last Friday.

Gold
Coin Sales in oz. /#coins + from 2/9/2017
One oz.
102,500
102,500
4,500
4,500
Half oz.
11,500
23,000
000
000
Quarter oz.
9,000
36,000
000
000
Tenth oz.
14,000
140,000
500
5,000
Total
137,000
301,500
5,000
9,500
Silver
Coin Sales in oz. /#coins + from 2/9/2017
One oz.
5,687,500
5,687,500
310,000
310,000

Fed Chair Yellen Back on the Hill Today

The Market Gage - Dillon Gage's Precious Metals Newsletter

Fed Chairwomen Janet Yellen is back on the hill today for her second day of testimony. She’s taking a hawkish stance on future rate hikes and putting pressure on the price of gold this morning. It seems that the future track of the price of gold is in her hands. Yesterday she indicated that it would be unwise to wait too long before raising rates. The possibility of multiple rate hikes this year is driving the dollar higher which in turn hurting the price of gold.

Some Wall Street Gold traders I spoke with are indicating that “IF” the 100-day moving average at $1,214.25 (spot) is violated they will reverse their long position and play this market from the short side. I expect if that happens, the selling will accelerate the decline in the price as we head back and test the $1,200 dollar level again.

BUT one can’t give up on gold yet. Yes, we are feeling the pressure and are extremely vulnerable to any negative news, but the price of gold has held up pretty well even with the equity markets and the S&P setting new all-time highs almost every day. Also the inflows by commodity funds into the Gold ETFs has helped the price from trading lower. What do they know that we don’t?

We have all heard the saying “talk is cheap,” well I’m still waiting for a tax plan that everyone will be extremely happy with, a wonderful the new Health Care Program and the data on how well the economy is doing. But until then we need to clear out all the “smoke and mirrors” and put your money where your mouth is, because if this doesn’t materialize sometime soon, the Trump honeymoon rally in equities will run out of gas and a significant correction will be right around the corner.

And yes even with the price of gold just hanging around taking slaps to the face each day, it will once again be the safe haven investment to turn to.

You could say I’m a little impatient. How about you? My wife says I watch too much business news and it’s effecting my thinking. Maybe so, but I’m addicted. I’m like a soap opera junkie. I just can’t help myself. That’s why a short vacation is in order. I will be back in the office on Wednesday next week. Until then.

All the best and have a wonderful Wednesday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


FLASH GAGE – FED Chair Comments Ding Gold

Dillon Gage - Flash Market Update

FED Chair Janet Yellen is ready to testify before congress today just released this statement:

Waiting too long to raise interest rates would be “unwise” as economic growth continues and inflation rises.

Immediately as her comments were released, the price of gold sold off seven dollars.

Even so, the odds of a rate hike in March according to the CME Watch tool still stands at just 13 percent.

So with the odds that low, most economists do not expect a rate hike in March, but the Chairwoman did say that increases would be evaluated “at upcoming meetings.”

Soft support levels still stand at $1,222 in the April CME Futures contract and the next critical level is the 100-day moving spot average at $1,215.00.

Have a wonderful Tuesday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Gold Under Pressure As Dollar Index Aims At 101

The Market Gage - Dillon Gage's Precious Metals Newsletter

The price of gold this morning under pressure as the dollar index approaches the 101 level again and ten year bonds yields advance. At the time of this report the price of gold is trading below the most recent support level at $1,128 and approaching a double bottom in the charts at $1,222. If the selloff continues, Wall Street gold traders tell me that they will be watching for the 100-day moving average at spot $1,216.25 before jumping back into the market. Some indicated this morning that they are happy with their current long position in the market, but see no reason at this level to add any more on. My take is, if the 100-day moving average is violated selling will accelerate bringing new shorts into the market place and the Wall Street longs will have to cover quickly.

Keeping the price of Gold from pulling back further has been the continued support in the Gold ETF arena.
Friday we saw an increase of over 400,000 ounces into the funds. Seems like all commodity fund activity.
Financial advisors still see little or no action by retail investors in the ETF market. Retail investors love affair with equities continues as the Dow Industrial Average looking at a higher opening this morning.

Refiners reporting steady demand from wholesalers and retail coin shops report decent store traffic.

The price of silver seems to have a mind of her own, happy with just hanging around the $18 dollar level. In the event we see a selloff in the gold down to its support levels, silver should follow. My technical friends tell me there is no support level to share with us in silver until $ 17.48 level is met in the March contract.

With the equities so strong this morning, I expect that the first level of support to be tested later today.
I will be watching closely the action in the dollar and ten year treasury yields as they both seem to move
the price of gold every step of the way.

Have a wonderful Monday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Gold Lagging On Ten-Year Bond Yields and Strong Dollar

The Market Gage - Dillon Gage's Precious Metals Newsletter

The dollar index approaching the 101 level this morning along with higher Ten-Year Bond Yields putting Gold in negative territory.

Some Wall Street Gold traders I spoke with this morning indicated that they expect gold to be under some pressure for the time being, as the equity market continues to set new records every day. But they also indicated that they view this pullback as a buying opportunity as they believe gold still has more room on the upside.

What I find interesting is the continued investment into the Gold ETFs by what I’m being told are large players and very little if any retail investor interest. Is that where the smart money is going?

Yesterday’s news on the President’s tax plan really put a torpedo in the side of gold as we broke thru the $1,228 level of support. The price of silver holding up much better, NOT approaching its level of support at $ 17.48.

As I indicated in yesterday’s Flash Gage, I expected the $1,228 support level to hold in the February Gold contract and we saw the overnight low get down to the $1,222 level. I still believe we will settle above that number today and head higher again now that the tax news has been absorbed into the marketplace.

All eyes over the pond are still watching Italy’s banking crisis. An interesting story in the Wall Street Journal this morning indicates that the Italian banking system is still having problems even after the government stepped in and set up a 20 billion Euro reserve fund to help Banca Monte Dei Paschi stay solvent. Italy’s banking system is still sitting on toxic
loans of over 200 billion Euros and doesn’t seem to have a plan to solve the problem other than throw money at it. I see this as “ground zero” for the problems facing the European Union that will come to a head in the near future and that’s when I expect the real rally in the gold market will begin.

Have a wonderful Friday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


American Eagle Sales as of 2/9/17

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on February 9th. The chart also shows the change in sales from 2/2/2017 which we reported last Friday.

Gold
Coin Sales in oz. /#coins + from 2/2/2017
One oz.
98,000
98,000
11,500
11,500
Half oz.
11,500
23,000
2,000
4,000
Quarter oz.
9,000
36,000
000
000
Tenth oz.
13,500
135,000
1,000
10,000
Total
132,000
292,000
14,500
25,500
Silver
Coin Sales in oz. /#coins + from 2/2/2017
One oz.
5,377,500
5,377,500
250,000
250,000

FLASH GAGE – Equity and S&P UP / Gold Down on Trump Tax Mention

President Trump meeting with airline executives at the White House this morning announcing
to the American people you will be very pleased with my tax plan that will be announced soon.

Equity markets react positively to the news. S&P hitting an intraday high after the news. Gold declining off the news as we view the dollar and Ten Year treasury yields up on the news.

The CME WATCH TOOL indicator, for the possibility of a rate hike in March up slightly on the news, up from 4 percent chance to 9 percent. Still nothing to be concerned about.

Levels of support indications are $ 1228 in the April gold contract and $ 17.48 in the March
Silver contract. I expect if these levels are violated we will see the current rally over for a while, but my sense is they will hold.

Have a wonderful Thursday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Gold UP as Dollar and Treasury Yields Dip.

The Market Gage - Dillon Gage's Precious Metals Newsletter

The price of gold is marching forward as the dollar and treasury yields decline. The Gold ETFs overnight experiencing strong inflows from fund investors. Retail investors still involved in equities, although most of the Precious Metal Dealers I spoke with yesterday said store traffic has picked up over the last few days. A good sign of things to come.

Time to ask my technical friends for their take on the markets. Interesting enough was their comment this morning that they see a “SOFT” resistance level is at $1249 in the February contract then not till $ 1265 where do they see a hard hold at that level. I guess that’s good news that Gold would have more upside potential ahead of it.

They also indicated that $ 18 dollar level in the March futures contract will be a Hard resistance level to break thru, but just expect some consolidation at that level before the next hard level can be obtained at $ 18.32 in the March contract.

Overall, they see the price of gold with a better chance of reaching their levels of resistance.

On Monday, Philadelphia Fed President Patrick Harker said, “an interest rate hike should be on the table at the next Fed meeting in March.”

Now listen to what else he said: “I am still supportive of three rate hikes this year, of course with the major caveat depending on how the economy evolves and policy, fiscal policy evolves.”

Why bother saying this? What changed from the last Fed meeting in January? We all know its “DATA DEPENDENT.” Just look at these two factors. Wage growth has been disappointing and we had an increase in the participation rate. Isn’t that enough info to take a March rate hike off the table?

Obviously, the market doesn’t expect a rate in March as indicated by the latest CME Watch Tool, only predicting a 4 percent chance of a rate hike.

What continues to worry me is that there were times in the past, and I’m sure there will be times in the future, where a Fed president’s comments affect the price of gold. Some comments in the past have moved gold $30 dollars after they were released. The gold market has enough problems deciphering the news without unnecessary comments about future rate hikes. Fed chairwomen Janet Yellen already shared her opinion about future rate hikes. I still believe it’s in the best interest of everyone to just let the Fed minutes speak for themselves and eliminate Fed President’s comments between meetings. It would be more productive to just let the market trade on factual events.

If you remember last year they called for five rate hikes and what happened, one. I see it as no different this year. At the end of the year will this administration win calling for a weaker dollar benefitting exports and the price of gold or will the Fed win executing three rate hikes. I just don’t see how they both can get their way. But with all that’s going on these days, NOTHING is out of the question.

I will be keeping an eye today on both the dollar index and the ten yield treasury yields as I believe these two markets will be the driving force for the price of gold.

Have a wonderful Wednesday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Gold and Silver Still Alive Per the CME Group

The Market Gage - Dillon Gage's Precious Metals Newsletter

The CME reported today that their average daily Gold future contract volumes averaged 525,000 in January, up from last year’s average daily volume of 405,000 contracts per day. That’s a 38 percent increase. Silver on the other hand rose 40 percent also showing a healthy increase.

Algorithm programs managed by hedge funds contributing to the increased trading volumes are indicated by the amount of switches executed in the Gold and Silver contracts. There are many different types of programs, from news driven to some that are just looking to take a dime on both sides of the market.

The price of gold breaking out of its most recent trading range this morning, surprisingly so, even with a stronger dollar on the board. The way I see it, if Gold can rally with the dollar index UP and over 100, that’s a good sign that higher prices are in the cards. But without any significant news I expect a one step back, two step forward price action. As I indicated in my first comment of the year, I expect gold to be higher by year end and still believe that will happen. The reasons are, I expect the Fed will be hard pressed to raise rates any time soon and with the madness in the political arena it could only help to increase the price over the near term. Plus one more important item: the Trump administration is still calling for a weaker dollar making our goods more attractive to the rest of the world.

Good inflows into the Gold and Silver ETFs on Friday. Gold increasing 332,764 ounces and silver up over one million ounces. These inflows still seem to be commodity fund related as the retail investors here in the states are still content holding on to their equity positions.

Physical demand for product in the Far East and in Europe still on the quiet side as reported by some traders.

Have a wonderful Monday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


American Eagle Sales as of 2/2/207

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on February 2nd. The chart also shows the change in sales from 1/26/2017 which we reported last Friday.

Gold
Coin Sales in oz. /#coins + from 1/26/2017
One oz.
86,500
86,500
11,500
11,500
Half oz.
9,500
19,000
500
1,000
Quarter oz.
9,000
36,000
000
000
Tenth oz.
12,500
125,000
1,000
10,000
Total
117,500
266,500
13,000
22,500
Silver
Coin Sales in oz. /#coins + from 1/26/2017
One oz.
5,127,500
5,127,500
230,000
230,000

Stronger Dollar Locks Gold in Trading Range

The Market Gage - Dillon Gage's Precious Metals Newsletter

This morning, a stronger dollar and higher 10-year bond yields are keeping the price of gold locked in a trading range. With the dollar index back over the 100 level this morning, its keeping gold from rallying thru the two key resistance levels in the February contract that were broken thru yesterday at $ 1,220 and $ 1,226.

Inflows in the Gold ETFs last couple of days seem to be fund related. None of the financial advisors I spoke with this morning indicated that there was any retail interest in investing in ETFs at this time.

In Wednesday’s comment I spoke about the possible breakup of the European Union. It’s time we look in our own backyard at the new policies being introduced by the Trump administration. By no means is it my intent to make this a political comment, just the opposite. I want to present this administration’s plan and let you decide if you believe the country is headed in the right direction.

Here’s my “Jobs” vs. “The cost of goods and services” – Cause and Effect analysis.

Let me list some of the things the President has on his agenda.

  • Cause: Asking, (I’m being polite) large corporations to bring manufacturing jobs back to America or create new opportunities for the American worker.
  • Effect: Lower unemployment, higher cost of products for American consumer.
  • Cause: Withdrawing from NAFTA. Imposing tariffs on Mexico and Canada to import their products.
  • Effect: Higher costs of goods for the American consumer.
  • Cause: Trade sanctions with China. Imposing import tariffs.
  • Effect: Higher cost of goods for the American consumer.
  • Cause: Higher minimum wage here in America.
  • Effect: More much needed disposable income for the lower middleclass. But would this in turn put some small businesses out of business? And would this force big business to look to go high tech to eliminate these jobs?
  • Cause: Tax cuts, both corporate and individual.
  • Effect: No matter how you look at this, this plan will turn into an expenditure in the beginning with the hope of growth in the economy increasing disposable income and eventually making this plan “ revenue neutral“?
  • Cause: The much fought over plan to revamp Obama Care. There are numbers all over the place on the cost of replacing Obama Care. It’s not worth my time trying to figure out how expensive this overhaul will be. I just don’t have a clue, but for sure it won’t be cheap.
  • Effect: Many Americans having the possibility of having no health care and adding to the countries debt in a big way.
  • Cause: The much needed infrastructure plan to repair our countries highway and bridges.
  • Effect: Some estimate this can cost the American tax payer over 1 trillion dollars.

I can go on and on with these proposals, but one must not forget the costs of entitlements facing our nation with the increasing costs of Social Security, Medicare and Medicaid. No one in Washington would even talk about these issues, but they do increase the country’s debt year after year.

As I said in the beginning of this comment, I’ll leave it up to you to decide if this is the right path for our nation.

So in the end where do we go from here and what shape will the U.S. economy be in four years from now? For that matter let’s look at where the price of gold will be trading a year from now based on all that’s proposed.

My Answer: “HIGHER”.

Have a wonderful Friday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


FLASH GAGE – Greece Grabs Headlines – Gold Climbs

Dillon Gage - Flash Market Update

What a surprise! Greece is back in the headlines again, holding both hands out looking for another bail out.

Gold is up this morning especially in Europe. As metal investors there digest the news on inflation, the highest in four years, and the potential Greece crisis encore.

Greek bonds are reflecting the concern as the Greek government bond yields climbed above 11 percent on January 31st, from about 5.5 percent a week earlier. Germany not happy that they will be looked upon for assistance once again and have asked help from the IMF.

No wonder French presidential candidate Marine Le Pen has expressed the desire to leave the EU. Greece bailout, Italy’s banking crisis, Portugal and Spain in terrible shape. Everyone in the EU is tired of the same old story and the talk at the water fountain is: We would rather take care of our own problems and not have to worry about the handout countries. It seems to many that the European Union was destined to fail from day one.

Well gold, once again will benefit from this kind of news. This morning we broke thru to levels of resistance in the April contract at $1,220 and $1,226 giving gold the potential for a further move to the upside.

Yesterday the Fed announced no rate hike and in my opinion, the way things are going in the economy, I expect they will be hard pressed to raise rates any time soon.

In tomorrow’s Market Gage I’ll share my thoughts on where this country is headed.

Have a wonderful Thursday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


FLASH GAGE – Fed Leaves Rates Unchanged

The Fed leaves rates unchanged. Here are some headlines out of the meeting:

  • FED LEAVES FEDERAL FUNDS RATE TARGET RANGE BETWEEN 0.5%-0.75%
  • FED SAYS FOMC VOTE WAS UNANIMOUS
  • FED SAYS MARKET-BASED INFLATION GAUGES ‘REMAIN LOW’
  • FED REPEATS EXPECTS ECONOMY TO WARRANT ONLY GRADUAL RATE HIKES
  • FED REPEATS NEAR-TERM RISKS TO OUTLOOK ‘ROUGHLY BALANCED’

Have a wonderful rest of your day.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Gold Drops Off Of Tuesday’s Rally

The Market Gage - Dillon Gage's Precious Metals Newsletter

All eyes on the Fed this afternoon as we await news on any rate hike. Odds of a rate on the CME Watch Tool this morning unchanged at 4pct. More important will be the language shared at the meeting.

Gold this morning is in negative territory as the dollar returns to the plus side along with treasury yields.

Here’s a headline from over the pond I want to share with you this morning showing inflation in the EU surging to the highest level in almost four years. According to the data released today, consumer prices in January grew the fastest since January 2013. Some are now calling for the European Central Bank (ECB) to cut back its bond buying program.

This past Sunday, members of France’s governing Socialist party elected Benoit Hamon as their choice to run in the April presidential election. The Socialist party had a choice between Benoit Hamon and former Prime Minster Manuel Valls. Early indications didn’t give either one a chance of winning the presidential election. There are other candidates that have a better chance including frontrunner, conservative Francios Fillon, far right wing candidate Marine LE Pen, centrist Emanual Macron and independent left wing candidate Jean-luc Melenchon.

It’s not my intention to bore you with this information, but to inform you that this election could have very serious consequences for the future of the European Union…which would then impact gold.

Why? Because if Marine Le Pen is elected, and yes she is gaining momentum, Ms. Pen has indicated that within the first six months in office she will put together a referendum for France to exit the EU. If that happens, there is a good chance it would be the end of the European Union as we know it.

Right now, many people in Europe believe that the anti-establishment movement that got Trump elected here in the states
and unexpectedly won the Brexit vote in England, is strong because people are tired of the same old politics and want a change.

So the first round of France’s presidential election is scheduled for April 23rd and in the event that no one candidate wins a majority, a run off will be held between the two leading vote getters in May.

Ok, let’s assume the Trump spirit is alive and well in the minds of the French voters, and that Ms. Marine Le Pen wins the election. Let’s also assume she is successful in getting the people of France to exit the EU. I’m sure you are asking yourself how this would affect the price of gold. Believe me, there will be many, many issues effecting the world economy if this happens and it should be a “GREAT” concern for all investors. But since this is a precious metals commentary we will just address the price of gold.

I don’t think anyone can argue that Italy, Greece, Spain and Portugal are bankrupt and will always be looking for a hand out.
First it was Greece needing a bailout, and if my memory is correct it was more than one Greek bank, then it was Italys Monte dei Paschi bank. Who knows who or what will be next. One has to believe that if France leaves the EU, Germany will be holding the bag (probably an empty one) supporting the rest of the EU’s troubled countries.

I can imagine before the EU goes away, that the ECB will have a lot to say about it. The question is, do they have enough fire power to stop it?

I don’t want to disappoint you. I really don’t have answer. I just cannot imagine this happening. But the same was said about the Brexit vote and when Trump was on stage competing against 15 other candidates. You just “never know.”

One thing is for sure, if the EU does break up, the demand for physical gold will be off the charts and no one knows how high the price will be or if there will be enough product to go around.

As my wife always tells me: “Be careful what you wish for.”

Oh, by the way if you have access to the Wall Street Journal on page b16 is an article on gold that is worth reading. If you don’t have access to it, it kind of summarizes why gold rallied
yesterday off a weaker dollar and political uncertainties. The Journal indicated that since Gold is traded around the world in dollar terms, which in turn a softer dollar will always attracts oversea gold investments.

Have a wonderful Wednesday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


FLASH GAGE- Dollar in Free Fall – Gold Rises

The US dollar in free fall this morning after comments by Peter Navarro, the head of President Trump’s national trade council, who said, “the Euro is grossly undervalued.” These comments echoed comments made earlier in the month by then President elect Trump that the US Dollar had gotten to strong.

The dollar index has broken thru the 99.50 level at the time of this “Flash Gage” and has given gold a boost, trading up over $ 20.00 on the day. Silver also benefitting from the rally is up over $.32 cents.

The 10 year treasury yield also taking it on the chin this morning down.0403.

Today is the first day of the FOMC meeting with an announcement on rates tomorrow expected at 2pm est. With the odds of a rate hike predicted by the CME FED WATCH Tool at only 4 pct. just a same old, same old response is expected Chairwomen Janet Yellen tomorrow. As always we await the language shared after the meeting.

Have a wonderful Tuesday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Chinese New Year Prompts Quiet Day for Precious Metals

The Market Gage - Dillon Gage's Precious Metals Newsletter

Very quiet opening in our markets this morning due to the Chinese celebrating the Lunar New Year. Their markets will be closed thru Thursday for the celebration.

Gold nonetheless bid up in Europe, as investors there see geopolitical factors that could influence the price of Gold going forward.

One overseas gold trader I spoke with this morning condemned the President’s plan that bans immigrant entry into the U.S. from seven Muslim-majority countries. He said, President Trumps’ “impulse governing” is a very dangerous way to conduct business and has many people across the pond very concerned. He also said that watching the protests here in the states and seeing how divided this country is could give him a sell signal in equities and a buy signal in the precious metals arena.

Traders will be watching the news from the FOMC meeting scheduled Tuesday and Wednesday this week. The CME Watch tool predictor only gives a chance of a rate hike at 4 percent at this meeting.

One hundred seventy eight thousand ounces were put into the Gold ETF on Friday possibly starting to trend higher once again giving the price of gold a boost. Silver also joined the plus ranks adding almost 750,000 ounces, which is a very small addition to the ETF funds currently holding 645 million ounces.

The dollar index is up slightly this morning and ten-year treasury yields off a bit. Kind of a mixed bag there.

The financial advisors I spoke with this morning say business is very quiet, except for the ones who have fee based businesses, who say phone calls from clients with questions are starting to increase. I believe one would view this as a possible profit taking event especially if the Dow retreats below the 20,000 level.

Have a wonderful Monday.


Lower Gold and Silver In Overnight Asian Trading

The Market Gage - Dillon Gage's Precious Metals Newsletter

Lower gold and silver prices seen in overnight Asian trading after seeing the dollar strengthen. Since then the dollar reversed course and now is in negative territory, but the price of gold seems to be ignoring the decline in the dollar and is sticking right in the middle of the overnight
trading range.

Some Wall Street Gold traders I spoke with morning continue to hold their short positions in both gold and silver as they believe the trend is their friend. They indicated that they expect the trend will be short lived, so as soon as we bottom out they will put their stop loss positions into place.

The gold ETF outflows continue for the fourth day in a row. This seems to be fund liquidation as I could not find any financial advisor that had any retail ETF liquidations to speak of.

As all eyes seem to be on what the president is proposing every day I wanted to share a personal story and equate it to what is going on in Washington.

I remember not too long ago when my daughter started college and applied for a credit card to use to buy books and food at school. Sure enough, since she didn’t have any previous credit she was turned down. So like any good (but not so smart dad) I co-signed the application and we got her a card. Like any normal college student, it didn’t take long for her to build up a balance of $5,000 and hit her credit limit. Since she is daddy’s little girl and couldn’t be left without a way to eat, we applied for a higher credit limit. One never knows what expenses might arise, poor baby.

The reason I’m sharing this story with you is the exact same thing is being proposed by the Trump
administration. It’s called “expenditures.” The definition of expenditures is “the action of spending funds.” Sound familiar?

So, let’s look at the president’s planned expenditures and how dangerous they could become.

What will the cost be for the planned infrastructure proposal? Democrats say one trillion. The President didn’t comment, but who can argue that it isn’t going to be cheap. Next “THE WALL.” Senate Majority Leader Mitch McConnell said he estimates the cost for the American taxpayer is between 12 and 15 billion dollars. Does anyone really believe that Mexico is going to pay for it? Next “Obama Care.” I don’t think anyone knows what the cost to revamp this insurance plan will be for the American taxpayer. And what will be the cost for each state once the new plan is put into place? Billions, trillions, who knows?

Now let’s look at another type of expenditure: tax cuts…both corporate and individual. I’m sure you are asking yourself how are tax cuts an expenditure? Well if they change the tax code that’s less money coming into the nation’s coffers. So I consider that plan a cost and an expenditure.

So let’s tie this all together. Is President Trump’s plan any different than my daughter’s credit card plan? In the end, Daddy’s on the hook and will end up paying the bill. And yes in the end, “you” the tax payer will be paying the bill.

All of what I shared with you this morning will, over the long haul, have a direct impact on the price of gold. It won’t be today or maybe tomorrow but it’s around the corner. Runaway government spending always has an impact on the price of gold.

I have only one question left if I may be so bold: Mister President, “What’s in “YOUR” wallet?

Have a wonderful Friday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


American Eagle Sales as of 1/26/17

U.S. Mint Year to Date Sales of Silver and Gold American Eagles

The following chart includes the year to date totals for 2017 from the U.S. Mint as of 5pm on January 26th.

Gold
Coin Sales in oz. /#coins + from 1/1/2017
One oz.
75,000
75,000
75,000
75,000
Half oz.
9,000
18,000
9.000
18,000
Quarter oz.
9,000
36,000
9.000
36,000
Tenth oz.
11,500
115,000
11,500
115,000
Total
104,500
244,000
104,500
244,000
Silver
Coin Sales in oz. /#coins + from 1/1/2017
One oz.
4,897,500
4,897,500
4,897,500
4,897,500

Dillon Gage Metals Opens Singapore Office

Dillon Gage Asia in Singapore
Expanding its global footprint to serve the Asian market

ADDISON, TX (January 26, 2017) – Dillon Gage Metals, an international precious metals wholesaler, announces the opening of a Singapore-based office to further their business interests in the buying, selling and trading of physical precious metals on a global stage. The newly formed entity will be known as Dillon Gage Asia, a.k.a. Dillon Gage Asia Private Ltd.
Continue reading “Dillon Gage Metals Opens Singapore Office” »


Stock Market Crossing 20,000 Hits Precious Metals

The Market Gage - Dillon Gage's Precious Metals Newsletter

Today all eyes on the Dow 20,000 level as all four metals taking it on the chin. What a difference a day makes, Palladium yesterday reaching a new high for 2017 and today we see Palladium doing a complete reversal down $40 dollars at the time of this report. Both Gold and Silver breaking thru key support levels.

As equities take all the headlines, profit taking and new short positions by Wall Street gold traders are taking hold. Most gold traders I spoke with this morning see this as a temporary decline in precious metal prices but they also said they will be trading the trend until it stops setting up short positions across the board.

Meanwhile, the question that is on many minds around the world is: Will President Trump’s stance on “America first” be the beginning of a trade war with the rest of the world? (Quickly followed in our industry with the question: And how would this affect gold?)

One word comes to mind with this approach and its “protectionism.” The word “PROTECTIONISM” is defined as the theory or practice of shielding a countries domestic industries from foreign competition by taxing imports.

The question on my mind, will this approach isolate the U S from the rest of the world from trading with us? Ok, I get it on job creation, sounds like a solid plan, but forcing companies to produce products here in my mind has the word “inflation” all over it.

President Trump has been saying all along that the dollar is too strong. As a person in the Gold industry, that’s music to my ears: Lower dollar, higher gold prices.

The president is talking about lowering corporate taxes to 15 to 20 percent and helping middleclass America with a tax break. Most everyone’s cheering, they like the idea, but many were cheering Bernie Sanders with his socialistic platform too.

So once again I’m screaming: what about our country’s debt? Is anyone listening? Is this the beginning of cutting Social Security benefits and eliminating Medicare as some politicians have called for? What will be the cost to America s tax payers to replace Obama Care? How can the country survive with Trump’s plan to spend billions on infrastructure. Where is all the money coming from?

Both a Socialist policy and a protectionist policy has to be paid by someone. In the end it’s the tax payer that will be left holding the bag.

Let’s not forget why these companies shipped job overseas in the first place. Cheaper labor, period! With many people demanding higher wages, doesn’t this increase costs to do business in the U.S. and eliminate jobs? Am I missing something?

And now we come to these policies and…gold.

The bottom line is, if the president continues this America First policy, it looks like the dollar is destined to head south in a big way and gold will be the benefactor of the move. So in turn, I expect the Fed to be all talk and no action as they were in 2016 giving the price of gold a strong foundation for higher prices this year. Don’t forget, according to the CME FED Fund watch tool prediction, there isn’t one Fed meeting in 2017 that has a probability of a rate hike over 47 percent. Just think, if everything proposed by this administration would stimulate the economy don’t you think the odds of future rate hikes would be much higher?

Believe me, this is not a political comment nor do I want to choose sides on this issue. It’s just my attempt to bring out the facts and I leave it up to you to make your own assessment of things to come and how it will impact our markets.

Have a wonderful Wednesday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.


Gold Stops Short Of Next Resistance Level

The Market Gage - Dillon Gage's Precious Metals Newsletter

At the time of this report, we see gold up ten dollars overnight stopping right at the next level of resistance at $1,219 in the February CME gold contract.

Physical gold demand at a steady pace in the Far East is helping the price build a base above the $1,200 dollar level.

Some equity advisors I spoke with this morning indicate that their clients are getting a little nervous about their investments as they see the Democrats doing whatever they can to derail President Trump’s first one hundred day agenda.

Senate Minority leader Chuck Schumer said over the weekend that Trump’s cabinet nominees have values that are inconsistent with those of the man who nominated them. Nonetheless the President plans to stay on track and ignore the rhetoric, signing an executive order removing the U.S. from the Trans-Pacific Partnership. He indicated he will start individual trade negotiations with countries in the Partnership on a one-on-one basis.

Some Wall Street gold traders I spoke with this morning have indicated that they are disappointed that gold has not broken thru the $1,220 level and that they will stop themselves out of their current long gold position at the first sign of any weakness in the price. If that’s the case, I guess we have seen the highs for the day already met. Silver demand in the Far East and in Europe is very quiet as investors ponder the future direction of the market.

Overall both Gold and Silver are range bound for the time being as expressed by my technical gurus this morning. Charts not revealing any patterns to talk about, so we wait to hear any news stories that can affect precious metal prices.

Have a wonderful Monday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.