Gold & Silver Stuck in Neutral

Market Gage - Precious Metals Newsletter Impacted by Europeon Markets

The stubborn success of the U.S. dollar as of late continues to be a yoke around the neck of precious metals, keeping gold & silver stuck in neutral. The U.S. Dollar Index yesterday was trading at 94.2 points, up approximately 0.14% over the previous day.

Metals spot prices were pushed off their two-week high achieved earlier this week, with gold currently trading at $1,251 and silver clocking in at $15.94. Almost all the future economic bellwethers for precious metals look a tad gloomy at the moment. A hawkish Fed, set on raising interest rates two more times in 2018, and short-term equity bargain hunters continue to keep a lid on a potential breakout for the yellow metal.

The current geopolitical outlook on the global stage resembles a tinderbox, so take your pick of potential flash points. North Korea and the U.S. appear to have reached a stalemate, with both sides admitting their leaders did, in fact, meet, shake hands and take pictures. But as for what guarantees were given during last month’s summit—ask two people, get two different answers.

In the next seven days, President Trump has another NATO meeting, a visit with the Queen of England and caps everything off with a one-on-one visit with Vladimir Putin of Russia. We’ll let you guess as to where any controversy erupts that could reach U.S. shores and move the needle of our metals markets.

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.