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.