FLASH GAGE – Greece Grabs Headlines – Gold Climbs

Dillon Gage - Flash Market Update

What a surprise! Greece is back in the headlines again, holding both hands out looking for another bail out.

Gold is up this morning especially in Europe. As metal investors there digest the news on inflation, the highest in four years, and the potential Greece crisis encore.

Greek bonds are reflecting the concern as the Greek government bond yields climbed above 11 percent on January 31st, from about 5.5 percent a week earlier. Germany not happy that they will be looked upon for assistance once again and have asked help from the IMF.

No wonder French presidential candidate Marine Le Pen has expressed the desire to leave the EU. Greece bailout, Italy’s banking crisis, Portugal and Spain in terrible shape. Everyone in the EU is tired of the same old story and the talk at the water fountain is: We would rather take care of our own problems and not have to worry about the handout countries. It seems to many that the European Union was destined to fail from day one.

Well gold, once again will benefit from this kind of news. This morning we broke thru to levels of resistance in the April contract at $1,220 and $1,226 giving gold the potential for a further move to the upside.

Yesterday the Fed announced no rate hike and in my opinion, the way things are going in the economy, I expect they will be hard pressed to raise rates any time soon.

In tomorrow’s Market Gage I’ll share my thoughts on where this country is headed.

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.