Gold Looking To Protect Gains

The Market Gage - Dillon Gage's Precious Metals Newsletter

Walter Pehowich is on vacation this week. Market Insights are prepared by senior Dillon Gage analyst.

Last week saw gold prices ping a three-week high on Friday, pushing right back past the $1,300/oz. threshold once again this year on softer than anticipated Consumer Price Index Numbers. December futures contracts held just higher at $1,303/oz.

As the markets open this week, gold is currently hovering around $1,305 per ounce. Low inflation is seen as the biggest boost to precious metals prices at the moment, with a current level just below two percent for the fifth month in a row.

Strap in for what could be a rollercoaster ride this week concerning the several factors that will move metals prices. A raft of breaking economic reports could foment a touch of volatility this week including manufacturing data, housing sector updates and what the Fed will do with interest rates in December.

Not to be ignored this week is another round of defense readiness drills on the Korean Peninsula. Monday kicks off a 10-day exercise with combined U.S. and South Korean forces. How will the North Korean leadership react? On Sunday, the official state-run newspaper, the Rodong Sinmun, called President Trump a “war merchant and strangler of peace.” Should the North Koreans switch from rhetoric to action, watch for a wild spike in gold prices across the board, as we’ve seen in the past.

Stay safe and have a wonderful week!

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