Gold Holds Its Breath While All Eyes Are On G20

The Market Gage - Dillon Gage's Precious Metals Newsletter

All eyes on the G20 meeting of the Finance Misters and Central Bank Governors which starts today in Germany.

Ahead of the G20 meeting, some European leaders have expressed concerns about the Trump administration plans for removal of some regulations which they see necessary for global banking stability.

Representing the U.S. for the first time will be President Trump’s handpicked Treasury Secretary Steven Mnuchin, who is expected to put pressure on some countries to increase the value of their currencies. The Treasury Secretary is carrying a message from our President that countries that export to the U.S. must stop their practice of keeping their currencies weak against the dollar for their own gains which in turn gives them an unfair trading advantage.

Data here in the states released today at 9:15 is industrial production and capacity utilization and followed at 10 am by consumer sentiment and leading indicators. Unless some surprises are revealed, I expect the price of gold to be pretty steady ahead of the news out of the G20 meetings today and over the weekend.

A mixed bag of items to share this morning. The dollar showing modest gains and the U.S. ten-year treasury bond yields are off slightly. The Gold ETFs saw small redemptions.

Far East gold traders, as well as our Wall Street Gold traders, indicate that at this point they have little interest in putting on any positions. Most have indicated they will wait for some news and direction in the price before jumping back in.

So the price of Gold just sits in limbo until some news emerges as traders and investors await patiently for any indication of which way gold will be headed next.

For those following the technical levels, the gold resistance levels are at $1,234 and $1,248, while silver is at $17.48 and $17.72.

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.