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!
Disclaimer: This editorial has been prepared by a senior Dillon Gage Metals analyst. 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 advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.