Gold Had Brief Overnite NK News Lift

The Market Gage - Gold is Elemental

Overnight the price of Gold got a temporary boost off the news that North Korea just might cancel the meeting with President Trump. During that period the June CME gold contract traded up to $ 1296.40.

But it didn’t take long for the sellers to emerge in Europe pushing the price of Gold thru the next support level at $1,288.00.

My old Wall Street friends who totally trade Gold by using charts tell me that according to their Relative Strength Index (RSI) figures, we are approaching the level that would indicate that the Gold market is oversold and here is where taking a long position might serve you well.

In other words, on the technical side, the current RSI is at 32.4. Any number under 30 in a 14-day window would indicate a buy signal. If you have an RSI of 70, a sell signal would be in order. So they tell me if the spot price of Gold hits 1285 they would be buyers based on their technical levels.

Please understand that this type of trading is not an exact science. These tools are used when fundamentals, like supply and demand, are out of whack or non-existent like we have in the Gold market at this time.

These tools are used in many markets and believe it or not these guys DO make a living using these tools to predict future market movements. They are not always right; if they were they would not be sitting in their office trading proprietary positions. They would be out at the Hamptons enjoying the beach and their summer homes already.

Yesterday, Ten-year Treasury Yields got up to 3.09 percent. That’s a HUGE move in the Bond market going up from just under 3 percent earlier and that in turn did real damage to the yellow metal. With Treasuries taking a breather today back at 3.06 percent, the price of gold should be somewhat supported at these levels.

With these markets being so unpredictable you just never know what comment or news story can send prices in opposite directions in a blink of an eye.

It’s always fun to watch the action.

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.