President Trump flexing his muscle and demanding a vote today on his health care bill. We all know the President hates to lose and if he doesn’t get his way he will move on to tax reform.
The equity market likes tax reform and in my opinion has little interest whether the health care bill passes or not. Case in point the equity market at 9:30 is showing a positive opening.
On the other hand Gold for the time being seems to be locked in at these current levels. The dollar and Ten-Year Treasury yields are also locked in their levels with little or no change on the day. So the price of gold and silver just sits here.
Frustration is the word I constantly hear from most gold dealers. One thing I will not attempt is to make a phone call to any of my Wall Street trading friends to ask their opinion on the market. I don’t want to lose their friendship.
Boring as it seems, the CME gold and silver volumes seem to have healthy activity day in and day out.
So there is still good interest in our market, unfortunately the lack of any news reduces the volatility, which in turn keeps the big players out of the market for the time being.
We at Dillon Gage constantly monitor all the news services around the globe every day to keep our readers informed on any potential news stories that affect the precious metals markets. However there are some days where there just isn’t much to share, no matter how hard you look, and today is one of those days.
I can talk about Durable goods orders released today or what we can expect to hear from San Francisco Fed President John Williams or St. Louis Fed President James Bullard or New York Fed President William Dudley who are all scheduled to speak to the media today. All my readers know what I think about Fed Presidents speaking between Fed meetings, so yes I’ll listen, but I really don’t see any point in doing so.
As my mom always told me, where there is life there is hope. So I’ll keep the window open with my binoculars in my hand scouring the world for some news that will get our market moving again.
I wish you all 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 advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.