The price of gold picking up steam this morning, approaching the $1,300 dollar level.
Many issues in the marketplace are supporting the price at these levels. One major factor that can affect the value of the equity markets and in turn the price of gold is whether President Trump’s aide Gary Cohn stays on. The market views Mr. Cohn as the key person who could help the President push thru his tax reform plan. In the event he resigns, many believe that tax reform will be dead and a selloff in equities will occur.
At the time of this report, I see volumes picking up in the December CME futures contract as the price breaks thru the 1306 level which is based on the EFP levels bringing the price of spot gold over the $1,300 dollar threshold.
Investors have so many factors to consider, the White House turmoil, North Korea, Iran, terror attacks in Barcelona, Charlottesville and who knows what will be next.
In the meantime, it’s our hope that the gold market can continue its climb upward and settle above the $1,300 dollar level in spot. This will be a confirmation to many investors that there more room to the upside.
Do you remember watching Kim Jung Un standing on the podium watching all his military might parade in front of him showcasing to the world his military capabilities?
I’m sure you are aware that this time of the year each year, the United States and South Korea have their military exercises in the Korean Peninsula.
Do you think it’s our turn to parade our military might so that Kim Jung Un will get the massage, or do you think he will see it as a military provocation?
I can just see Kim Jung Un looking thru his binoculars on a hill top watching the naval exercises thinking to himself, “Are they going to attack? Let’s send those Yankees a message.” What happens next is anyone’s guess.
One thing is for sure, the big Wall Street gold traders have locked, loaded and programed their algorithm strategies in the event any news hits the wires as they want to be the first to jump into the market.
You need to know the mindset of a Wall Street gold Trader. They are not like your average gold investor
who buys the metal as a long term investment. These folks are just looking for a quick move of 15 to 20 dollars and then they head to the exits. They can afford to adopt this kind of strategy because of the size of their positions.
How this all pans out is anyone’s guess. I just hope level heads prevail, but in the meantime Kim Jung Un continues with his nuclear and chemical weapon programs. Whether he tries to use them, sell them to Iran, or any terrorist group for that matter, (I guess whoever shows up with the largest suitcase of cash), we will have our work cut out for us trying to defend ourselves from a nuclear or chemical attack. May God bless this great nation.
I would like to share a story released on Wednesday by the folks at Bloomberg technology.
Space-like adjectives are often used to describe Bitcoin’s stratospheric price rise. Now there may be some truth in those analogies. Blockstream Inc. plans to make the digital ledger underpinning the cryptocurrency accessible via satellite signal so people without Internet access, or in places where bandwidth is expensive, can trade and mine Bitcoin. The company also touts the service as an additional layer of reliability for bitcoin’s Blockchain data in the event of a network disruption.
Bitcoin has soared more than 50 percent since the start of the month. A plan to move some data off the main network was activated last week in an effort to quicken trade execution and broaden access, helping to fuel the optimism. The price climbed to a record $4,449.90 Tuesday before retreating.
“With more users accessing the Bitcoin Blockchain with the free broadcast from Blockstream Satellite,
we expect the global reach to drive more adoption and use cases for Bitcoin, while strengthening the
overall robustness of the network,” Blockstream co-founder Adam Back wrote in an e-mailed statement.
Ground stations, called teleports, will uplink the public Bitcoin Blockchain data to the satellites in the network, which then broadcast the data to large areas across the globe, the company said. The network currently consists of three satellites that cover Africa, Europe, South America, and North America. By the end of 2017, Blockstream said it plans to “reach almost every person on the planet.”
While on the Topic of Technology
Goldman Sachs reported on Wednesday that they have expanded their Algorithmic Corporate Bond trading platform to 7,000 securities, tripling the number of quotes since last year. They went on to say that they intend to add this form of technology to their Junk Bond segment later in the year.
This mechanism takes the traders somewhat out of the picture as these programs give investors and hedge funds an accurate tradeable platform where they can conduct their business.
AI … Artificial Intelligence
Artificial Intelligence is a thought process exhibited by machines instead of humans and is being developed by a number of tech companies. Once programed, its objective is to think like a human, but with a more rational stance to rely on what it has learned entirely on an algorithm instructions.
To give you an example of this type of technology, the folks at chip maker Nvidia have outfitted a car with a computer that has an algorithm program that teaches the computer how to manipulate the roads by watching a human do it.
The program feeds the car’s sensors so that the AI can process the data as the car proceeds down the road and instructs the steering wheel the brakes and other car systems to properly control the vehicle. As the vehicle continues its journey, it continues to learn how to maneuver the streets. But what happens if something goes wrong, like hitting a telephone pole or a pedestrian?
Currently the system is so complex that in the event of an accident the engineers might have a problem trying to understand what went wrong.
That reason we bring all these stories to you is for you to have an understanding on how all the markets will operate in the future. We at Dillon Gage have made a commitment to our clients to offer you the most up-to-date technology available and to make you and your clients more competitive in the metals marketplace.
Have a wonderful Friday.
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.