Gold Held Down By Stronger Dollar and ETF Redemptions

The Market Gage - Dillon Gage's Precious Metals Newsletter

Sorry for repeating myself but it seems to be the same old story. Continued Gold ETF redemptions, a stronger dollar and higher bond yields are keeping gold from any upside potential.

The good news is that the price of gold and silver still remains in its most recent trading range and is not collapsing even with the continued pressure put upon it.

The Euro on the other hand is experiencing extreme pressure, down 3 big handles over the last 2 days after the (ECB) announced yesterday that they were extending the quantitative easing program another 9 months.

Most Wall Street Gold traders I spoke with this morning are waiting to hear what the Fed says next week and are content with letting their algorithm programs do the work for them.

Silver just barely holding on to the $17.00 level as some silver refiners lower premiums with the hope of moving some product before year end.

Gold kilo bar premiums on the rise after one refiner told me they are at capacity producing thru year end trying to meet all the gold kilo bar orders. I will be investigating today to see where they are all headed.

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 advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.