Gold Maintains Against a Stronger Dollar

The Market Gage - Dillon Gage's Precious Metals Newsletter

After reaching a three week low in the price of gold on Friday, the yellow metal has rebounded nicely this morning. Despite all the news of higher interest rates and the stronger dollar, the price is still holding above the $1,230 area

Good news for the longs as on Friday at one point it looked like the market was going to test the 100-day moving average around the $1,218 area, but steady buying emerged when the market traded down to $1,223 in the April contract.

As expected, all four metals in the ETF funds have shown outflows overnight.

Keeping an eye on the CME FED Watch tool today, it’s showing a 86.4 percent chance of a 25 basis rate hike at the next meeting Wednesday March 15 2017.

The Wall Street gold traders I spoke with this morning have taken a wait and see approach until the Fed meeting new week.

Now for news across the pond:

The Dutch election is just a week away and all of Europe awaits the results. This election could set the tone for the upcoming French and German elections just a short time away.

If you thought President Trump had an agenda, wait until you hear what the Right Wing Candidate Geert Wilders has to say in is campaign, which bears the slogan “The Netherlands ours again.”

If elected he says that, “Instead of financing the entire world and people we don’t want here, we will spend our money on ordinary Dutch citizens.” If elected, here are some eye-opening promises he has made to the people of the Netherlands:

  • De-Islamize the Netherlands
  • Zero asylum seekers and no more immigrants from Islamic countries
  • Withdraw all asylum resident permits which have already been granted for specific periods and close asylum centers
  • Close mosques
  • Lots of money to support the police
  • Lower income taxes
  • AND: Make the Netherlands independent again and “LEAVE THE E U”

So, to say that Wilders is against immigration, Islam and the EU would be an understatement.

His main rival is incumbent Prime Minister Mark Rutte. In an article in the Dutch newspapers in January he wrote that people who refuse to adapt Dutch values should “act normally or leave.” He also said “the solution is not to lump everyone in the same bag, to insult or expel whole groups from our country.”

The two candidates seem very hostile to each other and from one on the outside looking in has to be “bewildering” with all the rhetoric that’s being thrown at the Dutch people just ahead of the Election on March 15 (Which happens to be the same day of our next Fed Meeting).

In the END, another potential EU defector CAN help the price of gold in the long run.

Have a wonderful Monday.

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.