The President said today that significant progress has been made over the weekend in the China trade negotiations, and with that, he has decided to cancel the March first deadline. Off that headline, we see stock futures up triple digits as investors seemingly applaud the news.
The price of Gold overnight in Asia and in the European trading hours has been for the most part range bound as there is little if any news to move the price.
The dollar index is also trading in a tight range between 96.52 and 96.31, not helping to move the yellow metal move in either direction.
Silver CME warehouse stocks are slowly approaching the 300 million-ounce level. Refiners still finding it difficult to get a healthy premium for their outturned material; so the exchange continues to be a viable alternative to turn their outturned Silver into cash.
The price of Palladium continues its upward move on strong fundamentals and Platinum prices are also looking firmer, nowhere near the $800-dollar level, a level which concerned most investors.
On Friday, the Atlanta Federal Reserve Bank lowered their forecast for economic growth in the fourth quarter all the way down to 1.4 percent.
When the Fed just met in the end of January their GDP forecast was 2.7 percent. The reason for the lower expectation was the lousy December retail report. The forecast for real consumer spending went down from 3.5 percent earlier and now it’s down to 2.7 percent. Economists are expecting a poor GDP number in the first quarter mainly due to the government shutdown and weaker retail sales.
A slowing U.S. economy along with an expectation of less-than-stellar corporate earnings in the first quarter should bring new investors into the Gold market.
Here is some news to share at the dinner table. Released on Friday was findings from the Tax Party Center revealing that the top one percent of income earners here in the States pay 43 percent of all Federal Taxes, up from 38 percent just a year or two ago.
Have a wonderful Monday.
Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. 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. 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.