Gold Hanging Tough On Far East Activity

The Market Gage - Dillon Gage's Precious Metals Newsletter

A quiet trading session expected here in the States as we observe a Federal Holiday celebrating the life of Martin Luther King, Jr.

Overnight across the pond and in the Far East they saw an active trading session in Precious Metals with good trading activity in CME futures. At the time of this report we see over 90,000 contracts exchanged hands in the February gold contract.

Stateside, rhetoric abounded over the weekend between President elect Trump and the Democrats as one member of the Democratic party, Congressman John Lewis, said he believes President elect Trump “is not a legitimate president” and that he (Lewis) will not attend the inauguration on Friday. Now 18 other members of the Democratic party say they will not attend the inauguration.

I expect the unpleasant exchanges to continue which in turn will divide this nation further apart. This bickering between parties will not help our country solve its problems. I believe it’s at a critical stage. It is my hope it doesn’t get out of control.

Back to the markets. One Far East Gold Trader I spoke with overnight said some investors there are getting nervous at what they call “the bullying comments” made by President elect Trump regarding other nations and companies, indicating that he’s the boss and the whole world needs to listen to him. The trader said he expects this will cause investors there to seek a safe haven for their investments which he expects will give the price of gold a boost.

I would be remiss if I didn’t acknowledge today’s holiday. Maybe we all should stop and think about what Martin Luther King Jr. stood for and all take up his stance for peace, equality and justice for all Americans. There should be no place in this great country for anyone to hate his neighbor whatever the color of his skin or religious belief.

So, as our representatives in Washington act like children, we the people must remind them they are there to represent us not divide us as a nation and make the calls to our congressmen and Senators to stop the bickering and act like responsible adults.

Enough is enough.

Have a wonderful Monday.

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.