Gold Higher This Morning Despite Strong Dollar

The Market Gage - Dillon Gage's Precious Metals Newsletter

Gold higher this morning even with a stronger dollar. Far East physical buying continues to be the reason for the continued rally in the price of gold. Gold kilo bar consumption is the headline in the Far East as orders from here in the States pick up steam.

The yield in 10-year treasuries softer here in the U.S. and bond yields across Europe also lower.

The British Pound trading lower versus the dollar this morning over news from a weekend interview with Prime Minster May where she said, “We are leaving , we are coming out, we are not going to be a member of the EU any longer. We will have control of our borders , control of our laws but we still want the best possible deal for UK companies to trade with and operate within the European Union and also European companies to trade and operate with in the UK.”

You can bet that Germany and France will be watching closely how the exit proceeds as, if it goes well, one can assume public pressure on their government officials will escalate to follow the path of the UK.

Today Boston’s Fed President Eric Rosengren and Atlanta’s Dennis Lockhart are due to speak . I always feel the need to tighten my seatbelt as any surprise comment can affect the price of gold in a big way.

I’m still holding my position that there will NOT be three rate hikes in 2017 as I expect more problems from over the pond economically and politically to hand cuff the Fed s here from moving forward increasing rates. Also with the Democrats on the hill digging in their heals for a showdown with President elect Trump to try to derail anything he tries to do in his first 100 days.

 Many Democrats as well as some Republicans are questioning his plans for spending on infrastructure and at the same time his plans for cutting corporate and individual tax rates. Where will this take our countries debt as AGAIN as this is not being addressed as it should be.

All this will give my prediction credibility that the price of gold will be higher on January 1 st .2018 than it was on January 1, 2017.   

Oh one more bit of news. The gold ETF for the third day in a row has seen inflows as some  equity investors take some profits off the table and dip their toes back into gold for the time being as the Dow comes up just short of the magical 20,000 level on Friday.

Also $ 1182 level in the February contract should see some resistance, my charting fiends shared this morning but the real resistance doesn’t come into play until we trade $ 1195 in the February contract.

Have a wonderful Monday.    


<p style=“font-family: arial, sans-serif; font-size: 10px;”><b><i>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.</i></b></p>