The price of Gold continues it slow move to the downside. This price action coincides with the slow movement to the upside in the Dollar Index. Currently over the 96 handle, the US Dollar Index has experienced virtually no volatility in recent days due to the lack of any significant news stories.
This kind of “watch grass grow” environment is keeping investors in both the Equity Markets and our markets with their hands in their pockets.
Wall Street Gold traders are no different, as they sit back with almost no positions to speak of, letting their algorithm programs do the work for them. When you see very little movement in the price of gold, these Wall Street gold traders will look for some action in other markets like oil and currencies to keep themselves amused.
To use a phrase “it’s all quiet on the western front” describes this market as the price of Palladium lacks any catalyst to move the price. The Palladium EFP still reflecting the backwardation in the spot market which is currently at minus 45 minus 25. Over the last few weeks, this has shown no movement at all.
Commodity Hedge Fund managers seem to be content waiting for some news to move the needle either way.
So to sum it up, we will just have to wait and see what develops with the China trade talks and the Brexit negotiations. At the present time with the Federal Reserve on hold, these are the only two stories that matter to investors and traders alike.
Cryptocurrency In the Headlines
Bad enough that investors, no check that, speculators, in the Cryptocurrency Markets have to contend with everyday hackers trying to steal their investments. A story emerged earlier in the week that I’d like to share with you.
Reported in a Coindesk article this past Friday, the Canadian Crypto exchange, QuadrigaCX, claims it cannot repay most of $190 million in client holdings after its 30-year-old founder, Gerald Cotten, unexpectedly died in India, in December, 2018. Unfortunately, he was the only person who knew the passwords to its “cold storage” platform.
His widow, Jenifer Robertson, filed a sworn affidavit with the Nova Scotia Supreme Court, stating that QuadrigaCX owes its customers some $190 million in both cryptocurrency and fiat money. QuadrigaCX has filed for creditor protection, because it says it cannot access the funds stored in “cold storage.” While Robertson has Cotten’s laptop in her possession, CoinDesk wrote, she says she does not know the password, and a technical expert recruited by the firm has been unable to bypass its encryption. She also says Cotten left behind no business records.
This goes to show you how dangerous it can be to speculate in these kind of investments.
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.