Dollar Hits 3-Week Low

Dollar Hits 3-Week Low

This morning, we see the U.S. Dollar at a three-week low after the Fed Chairman’s comments yesterday. Jerome Powell said that the U.S. economy should keep growing at a solid, though somewhat slower pace this year, but he indicated that there are global economic risks to contend with, continued volatile financial markets and uncertainty about U.S. trade policy.

He went on to say that, “Growth has slowed in some major foreign economies, particularly China and Europe. And uncertainty is elevated around several unresolved government policy issues,
including Brexit and ongoing trade negotiations.”

All these comments along with the Fed stating they will be patient with future rate hikes gives the Gold investor some confidence that there is still upside potential in the price of Gold.

Spot technical levels of support continue to be at the $1,318 level and technical resistance levels in spot are not until the price reaches the $1,353 level. So, at this point we have a wide technical trading range to contend with as we wait for some significant news to bring
the price of Gold up to its next level.

On another note, we cannot forget that Central Bank buying of Gold last year was significant and with a slowing global economy, I don’t see that changing at all in 2019. This should also keep the price of Gold in a bullish mode.

On Thursday, the Department of Commerce is scheduled to release quarterly and annual growth figures. I imagine this could be one of those news stories that could have a significant impact on our markets if the numbers come in outside expectations.
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.