Gold Wavering As Global Instability Grabs Headlines

The Market Gage - Dillon Gage's Precious Metals Newsletter

Last week’s decision by the Fed to raise the benchmark interest rates by 25 basis points was both predictable and expected. What isn’t yet clear is what the FOMC is planning for its subsequent meetings this year. Lots of prognosticators are now seeming to look past the individual Fed decisions while casting for a long-term pattern.

While the U.S. economy continues to hold serve, there is much apprehension across the pond with plenty of financial issues swirling. Greek bailouts, Italian market troubles and the first round of formal Brexit negotiations for the UK get underway today—despite the disastrous results for Prime Minister Theresa May’s recent snap election.

Adding to all of this uncertainty comes the following news items from just yesterday. A U.S. warplane shot down a Syrian fighter jet that had just bombed American-backed coalition soldiers. A popular tourist resort in the African country of Mali was hit by terrorists and Iran’s Revolutionary Guard targeted ISIS fighters in Syria by launching missiles in retaliation for attacking Tehran on June 7. And back in England, an apparent terrorist attack by a driver who struck Muslims leaving Ramadan services, killing one.

Lots of instability out there on the global geopolitical front. Spooked markets abroad could elevate the precious metals market, so stay tuned.

As of this morning, the gold market is holding relatively steady from the end of last week. At last check, prices for gold are hovering around $1,248, while silver has slid back to under $16.60, palladium continues to sink from last week’s supply-induced rally and it currently at $864.

There should be plenty more to discuss this Wednesday, as it seems we haven’t even scratched the surface of our own political turmoil at home.

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 advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.