North Korea’s leader backs off from previous threats to attack Guam, in turn, gold sells off.
Most believe that for the time being this is only a pause in the action as North Korea continues on its nuclear capabilities.
Kim is quoted as saying, “If the Yankees persist in their extremely dangerous reckless actions on the Korean peninsula and in its vicinity, testing the self-restraint of the DPRK, the latter will make an important decision as it already declared.”
His remarks would appear to bring into play the large-scale military exercises held every year by South Korea and the United States that are expected to start at the end of this month. North Korea has always denounced the military exercises as provocative rehearsals for invasion and in the past has offered a moratorium on further nuclear and missile testing in exchange for their cancellation, but repeatedly has been rejected by the US and South Korea.
So, the Gold market looks for levels of support at the spot level of $1,262 and $1,248 as the next level.
I expect gold to hold these levels as the news is absorbed into the marketplace.
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 advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.