Gold Basically Locked in Place

The Market Gage - Gold is Elemental

A weaker U.S. dollar and stronger U.S. Treasury yields keeping the price of Gold locked in place.

Looking at the CME Fed Watch Tool indicators, the next Fed meeting (that is only 9 days away) is showing a 93 percent chance of another rate hike. This is also capping any chance of a sustained rally in the price of Gold.

There continues to be a significant amount of available silver on the shelves of the CME warehouses and dealer vaults, which is helping to keep the price of Silver in its place.

Wall Street Technical Gold traders who are still holding on to their long positions are feeling pretty confident that there is nothing lurking around the corner that could affect a significant sell off in the price of Gold at this time.


President Trump is sticking to his trade war threats even as we see a strong pushback from many of our U.S. allies. Tariffs on aluminum and steel seem to be only the tip of the iceberg for the Trump administration as tariffs on imported car companies are also being considered.

China, who is also feeling the heat, said they would not buy U.S. products without assurances that the United States would not move forward with plans to impose tariffs on 50 billion of Chinese imports.

Trying to get his point across on Saturday, the President tweeted, “When you’re almost 800 Billion Dollars a year down on Trade, you can’t lose a Trade War!”

The President is taking a tough stance on this issue and the question remains, if his plans are put into place, what effect will this have on global equity markets and the price of Gold?

Have a wonderful Monday.

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.