Gold Trading Holding Its Breath Prior to FOMC Minutes Release at 2 pm

The Market Gage - Dillon Gage's Precious Metals Newsletter

Gold opens up the trading day awaiting the release of the latest FOMC minutes at 2pm Eastern time today. Gold still sitting in a trading range as most Wall Street gold traders enjoying some time off in the Hamptons.

CME Fed tool watch, a barometer of the odds of an expected rate increase before the minutes are released show:

  • A rate hike in Sept. at 15 percent
  • A rate hike in Nov. at 16 percent
  • A rate hike in Dec. at 53 percent

The December assessment goes along with the comments made yesterday by Atlanta Fed President Dennis Lockhart who indicated he will support at least one rate increase before the end of the year. He believes, or shall I say he hopes, to see a strong third Quarter GDP figure which in turn will be just the data needed to increase rates at the December 14th meeting.

Most of the business’s new channel reporters are expressing frustration over the “do they or do they not raise rate signals” given by various Fed Presidents. Some are calling for “let’s just get it over with as we are all tired of reporting this madness.”

Equities hit all-time highs this week and job growth is strong, so just raise rates a quarter in Sept. and relieve all of this suspenseful nonsense and let the market do what it does best, trade on earnings and fundamentals.

It’s time to hear the news that’s not reported on the TV that will have a major impact on the price of gold going forward. As I indicated before, I expect the spark that will trigger a major rally in the price of gold will come from Europe.

  • The Migrant crisis continues to invade all parts of Europe. In Greece, Save the Children reports the number of migrants arriving in the Greek Islands has nearly doubled in recent weeks, putting pressure on already overcrowded camps.
  • A report today that the Swiss-Italian border frontier is becoming the flashpoint in Europe’s migrant crisis. Families looking to cross the border are being turned away, living without shelter, food and no sanitary facilities. Human right groups have called for clarifications from Switzerland over migrants claims that they have been denied a chance to speak to boarder authorities about asylum law. In essence the Swiss border is closed.
  • German also has its hands full with reports from INTEL that ISIS “hit squads” had entered into Germany with the hordes of migrants and there is irrefutable evidence that they are building an undercover command post planning the next attack.

So when do you think there will be a total uprising in countries like Germany and France? Folks are sick and tired of this, and as some call it an invasion into their country. There is no doubt in my mind that this was the main reason the BREXIT vote went the way it did.

Conflicting cultures, unemployment, lack of housing, no jobs, all fuel the fire between locals and migrants. Looks like government officials have no clue how to handle this crisis. So in my opinion, an economic crisis in Europe is right around the corner. The question remains what will be the catalyst that sparks the fury? A major terrorist attack? A civil uprising in France or Germany?

All this news just gives more credence that owning physical gold is a wise move for any informed investor.

Have a wonderful Wednesday.

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.