Wondering why all four precious metals are in the green today with the Dow, Nasdaq and S&P at all-time highs?
You can thank the Base Metal group of metals for leading the way. Today three-month base metal prices are up an average of over 1.3 percent. Copper this morning leading the charge up over 2 percent with all the other base metals seen in positive territory.
The base metal market looking at the President elect’s first 100-day plan to tackle the U.S. infrastructure problems first hand. Seems to be one of his top priorities.
The dollar seems to be consolidating at these levels and the gold ETF in its eighth day of declines. The silver ETF yesterday finally showed an increase in holdings.
December gold this morning still trading above the $1,212 level support after trading lower yesterday around the $1,206 area. Silver also looked weak yesterday trading just above the $16.52 area.
If I may give my evaluation of the market today with all that’s happening in the equity world, I think gold and silver at these levels are a positive. My only concern is that after talking to some Wall Street Gold traders yesterday they indicated that they will continue to sell gold into any rally in the price.
So the market seems to be expressing conflicting opinions. The question remains what will be the dominant force to move the price in either direction.
We will just have to wait and see and hope we can once again see some volatility as we did last week when the CME reported all-time record volumes in the Gold Futures. In the meantime I have to believe there is a sell bias in place in our market and the shorts might hold the winning hand.
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 advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.