Gold Stalls Lacking New News

Overnight the price of Gold in Asia and Europe traded in just a four-dollar trading range as no new news emerges to move the price in either direction.

All markets will continue to focus on geopolitical events (especially Brexit news), developments with the Trump Administration (especially on US-China trade and potential legal issues), Q1 corporate earnings and oil prices.

At 2 p.m. EDT today, the Federal Reserve will release the minutes from its last meeting. They have held interest rates steady at 2.25% to 2.50% and noted that inflation was running below its target of 2%.

Fed Chairman Jerome Powell’s comments during his most recent press conference said that some “transitory” factors could be impacting inflation. Investors didn’t like that comment and sent the markets lower.

Investors will be looking at the minutes released today for additional clues as to what Powell could have meant when he alluded to transitory factors.

In other news, in April Russia added another 15.6 tons of gold to their reserves.

Palladium’s price premium to platinum has narrowed to $510 per ounce from over $720 per ounce in mid-March.

CME Silver warehouse stock inventories have leveled off at 306 million ounces as refiners are finding other ways to sell their outturned material.

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.