For the time being, the report of a trade deal with China is keeping the price of Gold stationary. The price of Gold is in a need of recharge, and that doesn’t seem likely, for the moment.
A positive outlook for global growth on the back of a trade deal, could see precious metal prices decline further as investors leave their metal investments and head back into the Equity Markets.
The Dollar Index trading was in a somewhat tight range over night, helping to keep the price of Gold in its place.
My concern going forward, is in the developments in the Brexit negotiations. Depending on the outcome it could have a significant effect on the Euro and the Pound Sterling. In the event it truly gets chaotic, and that’s not too far from happening now, it could boost the U.S. Dollar and in turn hurt the price of Gold.
However, the key word when discussing global markets these days appears to be chaos, and economic doubt could also lead to safe haven buying.
The long-term resistance level in Platinum was reached and penetrated overnight at $855, giving investors in that market the confidence that higher prices are a good possibility in the near term.
Not too much to report in the Palladium market as fundaments and the EFP remain steady. EFP was last quoted at minus 40 minus 20.
CME Silver Warehouse stocks continue to climb, now between eligible and registered, are approaching 307 million ounces.
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.