Walter Pehowich will be back with Friday’s commentary, today’s comments come from a senior Dillon Gage Staffer.
After gold reached a one-year high last Friday, profit-taking opportunities have followed, leading the yellow metal into downward technical correction territory late Tuesday. As of this morning, gold prices dropped about $10 more and are hovering at $1,321. Meanwhile, the Dow Jones Industrial Average jumped up over 60 points, leading a rally in the equities market.
Before we go a step further, let’s revisit the latest in news from North Korea. After a fresh set of sanctions were slapped on the isolated country, banning textile exports and capping fuel supplies, the Democratic People’s Republic of Korea (DPRK) replied on cue with their latest fiery rhetoric. North Korean ambassador Han Tae-song was quoted stating, “…the regime is ‘ready to use a form of ultimate means’ and that the forthcoming measures will make America suffer the greatest pain it has ever experienced in its history.” It seems that one of two things will happen next: either the North Koreans are going to run out of hyperbole or launch another missile.
The next market-moving event should be the release of Thursday’s consumer price index report for the month of August, expected to feature a rise of 0.4 percent. In turn, it seems that reports of low inflation in the U.S. and EU could keep the Fed from tightening monetary policies. We’ll know much more after next week’s FOMC meeting.
Until then, stay tuned and have a wonderful Wednesday…
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