Someone start a fire……Please…..
Looking at a bar chart in gold, for the most part in 2018 the heavy bulk of trading has been between $1,320 and $1,350. One can counter with a few excursions outside these ranges, but they have been short lived.
In other markets, Silver ETF holdings now total 645 million ounces. Their range for 2018 has been between 638 million and 649 million. Not much of a range there either.
The Wall Street Gold traders I speak with daily are frustrated with the lack of volatility this market has been exhibiting of late. Most, because they are multi-talented, have switched over to the Foreign Exchange arena to make a living.
There are two things keeping the price of Gold locked in and they are, the very popular Equity markets and the cloud of the possibly of four rate hikes this year. But logic would indicate that four rate hikes will not happen, based on the current lack of volatility in the U S dollar and Ten Year Treasury Yields.
The US Dollar and the Ten-Year Treasury Yields are locked in place. The CBOE VIX index is flattening out. The FOMC FED Watch tool is not moving much. Even Bitcoin investors are now taking it on the chin. And now we are even looking to hold out an olive branch to Kim Jung Un. Who would figure?
If you ask any prominent Gold advisor for his or her opinion for the future direction of Gold, expect wild differences. Just scour the internet and you’ll see opinions all over the place for 2018.
Unfortunately, it is just impossible to predict the future for Gold this year until we have more clarity from the Fed. There is nothing in the market right now that can point us in any direction. But if I was a betting man, based on the lack of volatility in the markets I indicated and the Equity markets are not making a new highs, if there is a break out in the price of Gold it should be to the upside.
As I indicated in previous editions of the “Market Gage,” patience will have to prevail. I do believe in time the data will not be there for the Feds to raise rates four times this year, but for now we will just have to wait and see. There seems to be no clear answer at this time.
Yesterday, Dillon Gage had a 48 minute interview with a Reuters reporter. This morning one of our quotes are making some headlines in the Far East, and that is, “The markets are not moving on fundamentals, only on rhetoric.”
Hang in there our time is approaching.
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.