Higher Asian Equities Pressure Gold

Higher Asian Equities Pressure Gold

Markets here in the states are closed today in honor of Dr. Martin Luther King, Jr.

Despite weak Chinese Gross Domestic Product (GDP) figures, Asian Equity markets are all higher overnight putting some pressure on precious metal prices this morning.

Recently, the yield on U.S. 10-year Treasuries has strengthened, indicating investors are viewing it less as safe haven vehicle.

The Dollar index has been trading sideways of late, prompting nervous longs in the Gold market to head for the exits as the possibility of the price of Gold to trade and settle over the $1,300 level fades.


Later today, British Prime Minister Teresa May will present her Plan B for the UK to exit the European Union to Parliament. Plan A for the most part has been rejected by members in Parliament.

One of the biggest hurtles appears to be keeping the border between Ireland and the Northern Ireland open if the if the EU and the UK fail to strike a deal. The deadline to exit the EU remains March 29th.

Price of Platinum Hitting a Fork in the Road

Investment interest from hedge Funds has picked up in the start of the new year, as new money sees an opportunity to take a shot on a terribly beaten product in 2018.

This past week, Platinum Exchange Traded Funds have seen inflows into the marketplace as traders hope the price has hit a bottom.

But the question remains, with slowing growth in global vehicle sales, especially in diesel passenger vehicles, can the price of Platinum keep its head above the spot level of $800 dollars.

The price of Platinum compared to the price of Palladium widened to over $600 dollars last week reflecting totally different fundamentals in the two metals. Today the difference is at $582 dollars.

The World Platinum Investment Council forecasts a Platinum surplus in 2019 of over 455,000 ounces, not a good sign for investors hoping for a bounce back in the price from its current so called bottom levels.

Have a wonderful Monday.

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.