Dollar Starts Climb – Gold Hangs Tough

The Market Gage - Gold is Elemental

The price of Gold is surprisingly in positive territory this morning as the recently declining U.S. Dollar changes direction. The currency traders I spoke with this morning indicated that they believed the dollar has bottomed out at these levels and they now expect a turnaround.

So that, in theory, is not good news for the price of Gold in the coming days.

Nonetheless, giving Gold some level of support this morning is the fact that Bond yields are all lower across the globe.

In the Silver market, my technical friends indicate that the $17.32 level will be a key level of resistance on the upside for the time being.

Palladium in negative territory today as some fund profit taking has been reported by PGM traders. Palladium prices recently have gotten as high as $1,098.50 and not far from their all-time high reached in January 2001 at $1,110 dollars an ounce.

Bitcoin Update

Cryptocurrencies are becoming a big issue for governments. Their inability to regulate this industry is giving criminals a field day with money laundering, extorting online participants using ransomware, and demanding payment with digital currencies like Monero, Ethereum and Zcash.

The price of the most popular Cryptocurrency Bitcoin has been under pressure of late, trading today at $15,000.00 dollars after almost reaching $20,000 dollars on December 18, 2017.

One cryptocurrency on the minds of many Bitcoin investors is “Ripple”. This so-called currency overtook Ethereum last week to become the second largest cryptocurrency in the global market. Ripples capitalization went from 40 billion to 88 billion last year. On January 2, 2017, Ripple sold at just six-tenths of a cent, today the token is worth $ 2.29.

Since its creation, Ripple has attracted millions in venture capital. Just a month ago, it signed on 10 new financial institutions that were all vying to use Ripple’s groundbreaking

Many are surprised by the popularity of Ripple, but if you dig down to some interesting stories behind Ripple you might understand its attraction. First the price is so low, giving many players an opportunity to get involved where the price of Bitcoin is out of reach for the little guy. Earlier in 2017, a major Swedish Bank, SEB, settled $180 million on the Ripple Blockchain network by sending cross Border payments on behalf of high profile clients. Banks in Thailand and Japan have also been processing transactions for many months using Ripple.

However, Ripple bank transactions are not being used on a daily basis and are used when appropriately requested by large clients.

Ripple is very popular in South Korea and over this past week the South Korean Market and its largest cryptocurrency exchanges including Bithumb, Coinone and Korbit have accounted for more than half of Ripples $ 4.5 billion dollar trading volume.

For sure it looks like cryptocurrencies are here to stay, but one must remember that these markets are non-regulated, highly speculative and loss of your total principle is possible for many reasons. Adopting the saying “let the buyer beware” should be part of your thought process whenever investing your hard earned cash in any of these types of investments.

Have a wonderful Wednesday.

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