Gold Rises on Far East Buying

Gold Rises on Far East Buying.

Strong overnight buying in Gold is reported out of the Far East, as the price of Gold breaks thru key resistance levels.

The price of Gold hit a six month high today on an abundance of geopolitical risks that concern investors all across the globe.

U.S. Ten-Year Treasury yields hit their lowest level since April 2018.

The Dollar index hit a low overnight at 96.53 helping the price of Gold to continue its march higher, but the dollar did fall short of breaking thru another key support level at 96.50. Interestingly enough, at that point the price of spot Gold stopped short of its next key level of resistance at $1,275.

The Fed and Global Economies

The Fed cannot continue to ignore the slowdown in the economies in Europe and China. Some of it is because of trade and some because of bad policy decisions, particularly in Europe.

Going forward, there is a growing concern from some Wall Street Traders and investors that the problems overseas could affect the U.S.

It’s not like we don’t have our own problems to contend with.

Let’s call it as we see it. The current tariffs will weigh heavily on the U.S. economy and in the event the President goes ahead and imposes a 25 percent tariff (combined with the Fed’s rate increases) a recession could occur sometime next year or the year after.

There is so much negative news, that its worth listing the headlines again, in no particular order:

  • The current trade war with China
  • The Government shutdown
  • Our country’s growing debt
  • U S consumer household debt, continues to set new all-time highs
  • Higher interest rates
  • An enormous cost of Healthcare reform (When will that be addressed?)
  • The other Entitlements! No one on Capitol Hill has the guts to bring up this topic
  • The cost of Infrastructure (Waiting for the next bridge to fall?)
  • The Brexit stalemate
  • A growing slowdown in the European economy, especially in Germany
  • Italy’s budget woes, and its battle with Brussels
  • The failing banking system in Greece, Spain and Portugal
  • The benefits of the U.S. tax cuts, all absorbed by the cost of the trade war

No wonder the Equity markets have been under significant pressure. There is no good news to be found anywhere.

Unless something drastically changes, this country is in big trouble.

So after reading all this negative news, don’t you think an investment in physical Gold or Silver could be a wise choice. No wonder we have seen the price of Gold rally from its low a few months ago at $1,160 to where it is today.

And if just a few of the things I mentioned come to fruition, an investment in physical Gold could pay high dividends. Remember, a few months ago when I explained why my financial advisor friends should recommend dollar cost averaging to their clients who wanted to enter the Gold Market?

The clients who followed this path are already reaping the benefits.

There is really a lot to think about.

Have a wonderful Wednesday.

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.