Global Risks Boost Gold

Geopolitical risks across the globe keeping the price of Gold in positive territory early this morning.

Surprisingly, an extremely tight trading range in Gold was seen overnight in Asia even after the announcement that the talks with China have ended in a stalemate.

If you have been using a Palladium chart to predict the next move in the price of Palladium, you can see that the price action continues to consolidate at these levels after the sharp sell-off since the March 2019 record high of $1,617.50 per oz.

Our sources tell us that the majority of the Commodity Hedge funds remain in the market, even though some have reported taking profits off the table.

Shortfalls in supply continue, as recently reported by Johnson Matthey. They reported that they believe the deficit in the Palladium market is set to widen significantly this year to 809,000 ounces up from the 121,000-ounce deficit reported last year putting this market in its eighth consecutive year of deficits.

JM went on to report that the use of Palladium among Chinese automotive producers is set to increase, mainly due to stricter government regulations.

This should support higher prices in the long run.

Have a wonderful Friday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. 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. 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.