Walter Pehowich is off today. Today’s insights are provided by senior Dillon Gage staff.
Yesterday’s bumpy road in Washington gave us a short-lived bump up in gold prices.
After the bombshell firing of Secretary of State Rex Tillerson, there seemed to be an immediate lift in the safe-haven price of gold and silver as the news flashed around the globe. With estimates as high as over 40 percent turnover so far in Trump’s administration, this type of news really doesn’t take people by surprise anymore.
This morning, gold has as been riding a see-saw.
About a hour prior to this report, Gold futures rose slightly higher in reaction to the Commerce Department’s February U.S. retail report that showed sales decreasing by 0.1% to $492 billion (economists had expected a rise). This was the third straight month that the overall retail sales declined. On this news, the April gold futures rose $1.40 higher to $1,328.50 an ounce.
Now for the other side of the see-saw. A stronger U.S. dollar index and gains in U.S. stock indexes are pressuring on the yellow metal. April gold was last down $4.30 an ounce at $1,322.80.
Reservations about the Fed?
All eyes on Wall Street are already peeking around the corner, as next week the Federal Reserve is widely expected to hike interest rates by 25-basis points. If history is a past judge, we may see a brief sell-off in gold, then a rally once the official news has broken.
But next week is still a long ways off in this crazy news cycle we’re currently experiencing.
Stay safe and have a wonderful Wednesday.
Disclaimer: This editorial has been prepared by Dillon Gage Metals staff 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.