Gold’s Calm Before A Storm?

Market Gage Gold Market Insights

Walter Pehowich is attending the IPMI conference. Today’s comments were compiled by Dillon Gage senior analyst

The precious metals market is calm across the board this morning, on pause as we await the details of the pending summit between President Trump and North Korean leader Kim Jong Un. They’re both in Singapore, prepping for an imminent summit on the potential de-nuclearization of the Korean Peninsula. If achieved, there may be a lasting peace accord for the first time in 70 years. If no agreement is reached, the markets will likely be spooked. At the time of this writing, spot gold is trading above $1,300 (at $1,302.60) and silver is flirting with $17 at $16.95.

The equities markets are also flat at the moment, with the Dow and NASDAQ virtually unchanged. Overseas, a lone bright spot has emerged that Italy may be close to resolving its recent tension with the EU. Against this backdrop is the recent contentious G-7 Summit, which concluded without the U.S. signing the joint communique pledging ongoing cooperation, leaving the potential trade and tariff wars between our allies on the table.

The factors which move the needle on precious metals prices should be revealed in short order. The world watches closely to see the results of the North Korean summit meeting. One thing is for sure–the language translators should have their hands full.

Additionally, investors are looking homeward, as it is expected that the U.S. Federal Reserve is headed toward raising target interest rate this week. The hike would potentially take interest rates above the rate of inflation for the first time in ten years. The expectations are that the Fed is seeking to maintain the U.S.’s second-longest recorded expansion while trying to keep edging rates higher.

Have a wonderful week

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