The price of Gold softened moderately overnight in the Far East and Europe, trading in just a $6 range. The good news is that the price is relatively steady. The bad news is at this moment is there doesn’t seem to be a catalyst to get the price of Gold back over the $1,300 level once again.
The driving force, or the lack of, is coming from the activity in the U.S. Dollar. It seems that a controlling factor in the Dollar index has been coming from the Brexit negotiations. When their deliberations take a turn for the worse, the Pound Sterling and the Euro take it on the chin causing the U.S. Dollar to strengthen and in turn effect the price of Gold.
This looks like a continuing pattern until they find a resolution. So, in the near term, I expect the price of Gold to stay below the $1,300 level.
196,000 jobs were created in March, which should increase an already strong consumer confidence figure. When the job number was released at 8:30 this morning, stocks gained and the price of Gold sold off two
dollars.
There seems to be very little risk in the Equity Market these days eliminating the need for so-called safe haven investments. Some Financial advisors still recommend a dollar cost averaging approach to get into the Gold market and put in place a truly balanced portfolio.
Have a wonderful Friday.
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.