Gold Still Climbing Despite Dow Records

The Market Gage - Dillon Gage's Precious Metals Newsletter

The price of gold continues to march forward even in the face of Fed Presidents’ comments calling for three rate hikes this year and the Dow setting a new record for the tenth straight day.

Also setting a new record for 2017 are inflows into the Gold ETFs, sitting at 65,321,062 ounces being held.

Far East Gold traders buying Gold overnight following their American counterparts. One Wall Street Gold trader I spoke with this morning indicated that at the 200-day moving average mark he will take off all of his gold position that he has been holding since the $1,220 level as he sees this level around $1,261 spot to be the next HARD level of resistance to break thru.

A lower dollar index and softer ten year yields helping gold along.

I can’t disagree with my trader friend, taking profits here, as I believe this market needs a breather and I expect that will come today with the dollar strengthening and slightly stalling the gold rally temporally.

In the event the 200-day moving average level is penetrated, the next soft level of resistance is $1,265 and nothing till $1,292 after that.

The price of silver is just following the rally in gold. Some dealers reporting lowering premiums for some silver products that they are overstocked with just to move some inventory.

Have a wonderful Friday.

Disclaimer: This editorial has been prepared by Walter Pehowich 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 advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.