Gold Rebounds On Weaker Dollar

Market Gage Gold Market Insights

The price of gold rebounding off last week’s lows as a weaker U.S. Dollar and lower Treasury Yields across the globe are supporting the price.

Support levels in both Gold and Silver seem to be holding better in overseas night-trading sessions than they are here in the States. There are some Wall Street Traders who are still short both Gold and Silver, that tell me they expect lower numbers today and in the days ahead.

Commitment of Traders Report

The report reveals 36,000 long Gold contracts headed for the exits from Tuesday, Nov 28th thru Tuesday, Dec 5th and 15,000 new shorts entered the fold. This was the move from $1,297 high to the Tuesday low of $1,261.

The Fed

This week it’s expected the Federal Reserve will complete their two-day meeting on Wednesday with a rate hike. According to the CME Fed Watch Tool, the current odds of a rate hike on Wednesday are at 90.2 percent. The expected quarter point rate hike will be the last for Chair Janet Yellen before Jerome Powell takes over in February.

Bitcoin Futures on The CBOE

The CBOE Futures Contract opened trading at 6 pm last night at $15,460. When shorts entered, the market dipping briefly before rising to a high of 21 percent at $18,700. Then a sell-off occurred when some day traders took quick profits. At one point, the CBOE had some issues reporting that the website was temporally unavailable. It seems there was unexpected volumes at one point, but that issue was quickly resolved. I expect the real action to occur when the CME launches their Bitcoin Futures contract next Sunday night.

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.