Gold’s Recovery Mode

At the time of this report early Friday morning, all four metals are found in recovery mode. Let’s take a deeper look at the two metals that have had a lot of action this week, particularly, this first one.


This morning, Palladium found investors who believe in the fundamentals that have recently brought the price of the metal to new highs. This action reclaimed a chunk of this week’s losses.

What I found interesting, is that on the first day of double digit declines, open interest in the June contract only dropped a little over 1,000 contracts and yesterday lost 2,000 contracts. It looks like some of the commodity fund managers decided that it was time to sell their holdings and took their profits off the table.

So, all in all, this is not a total confirmation that the holders of long positions have left town.

Unfortunately, we are unable to gauge the physical side of the ledger in Zurich where a lot of the action occurs.

Surprisingly enough, in the last two days Palladium ETF investors have stayed put, even adding slightly to their positions.

So, it will be very interesting to see how things play out today.


This morning finds Gold back hovering at the $1,300 mark. The holders of long positions in the yellow metal were disappointed with yesterday’s $18 drop. However, some traders I spoke with this morning said that Gold’s correction, down from this year’s high of $1,347, had been overdone, though they do not see a significant rally in the cards.

For the time being they expect the price of Gold to stay locked in a range of $1,290 to $1,310 dollars until some significant news hits the wires.

All markets will continue to focus on the Brexit developments and especially US-China trade negotiations talks.

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 acce