Walter Pehowich is on vacation this week. Market Insights are prepared by senior Dillon Gage analyst.
The bulls continue to run wild, smashing records on Wall Street, as the Dow Jones Industrial Average hit another all-time high Thursday, topping out at 23,163.04. Confidence that corporate earnings will continue to beat expectations seems to be fueling this extended rally. Not bad considering that yesterday was the 30th anniversary of a day we’d all like to forget—Black Monday–when the stock market crashed over 500 points in one day…almost a 23% loss.
Typically, Dow Jones records dampen precious metals prices, but both gold and silver had lifted on the news of a weaker U.S. dollar earlier yesterday. THEN the dollar got a lift, hitching a ride on the passage of the Republican budget plan for the 2018 which will likely aid the Republican’s aim to pass a tax-cut package without the support of Democrats, this news dampened gold late yesterday into the night.
HOWEVER, one piece of news yesterday gave gold a hand. On Wednesday, we noted that gold took a hit when Bloomberg reported that John Taylor, a noted ratings hawk, had made a favorable impression on President Trump, who is interviewing the top five candidates to take over the Fed Chair reins. But yesterday, Reuter’s reported that dovish, current Fed Governor Jerome Powell is now Trump’s favored choice. That news added little stabilization to the yellow metal. Some people think a decision in this five-person horse race could be announced as early as next week. It’s all up to Trump as we head into the home stretch.
Currently, the yellow metal is trading at around $1,284 and silver is holding at $17.20.
North Korean Check-in
Our daily North Korean Peninsula update is unfortunately still necessary, as U.S. and South Koreans continue joint naval exercises. Yesterday’s quote from the North Korean state news agency KCNA: “The U.S. is running amok by introducing under our nose the targets we have set as primary ones. The U.S. should expect that it would face unimaginable strike at an unimaginable time.” Then, in getting personal with our President, “The rabid man in the White House…will first face the immense volley of nuclear fire if he hopes to settle (this) confrontation with nukes.”
Seems that they’re continually raising the bar on bluster. At least let’s hope that’s all it is. It is interesting to note that earlier this week, the U.S.
Stay safe and have a wonderful weekend…
Disclaimer: This editorial has been prepared by a senior analyst of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. 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.