Little News That Affects Gold’s Price

Little News That Affects Gold's Price

We start the week with little, if any, news to report that will affect the price of Gold. After a weaker than anticipated GDP number was released on Friday, the equity markets now turn their focus back to the release of corporate earnings.

The question remains, can the economy continue to grow at an impressive rate of 4 percent or more in the coming quarters?

With the price of Gold back under the $1,225 level once again we see more redemptions in the Gold ETF funds.

Wall Street Gold traders, for the most part, are absent from the market, but two of the ones I spoke with this morning said they are considering buying Platinum and selling Gold as an arb as they believe that the price of Platinum is terribly oversold and the price of Gold continues to have downside risks. I guess they are bored and need something to do.

But in defense of their logic, I ask, at what price point will the platinum miners give up production and close their facilities? Below $800 dollars just might be the tipping point, but some traders claim we are at that price point right now.

True, this is a market very few care about, but the fewer who participate in trading the easier it becomes to move the price. Nonetheless, Platinum still has many industrial applications. Less exciting than it was in the past, but Platinum still has value. The question remains at what level?

Back to the price of Gold. Everyone continues to watch the next level of resistance in the price of Gold at the $1,236 level which at this point seems miles away.

In other news, the President said, that he would be willing to “shut down the government” if Democrats refused to give him the necessary funding for the border security, including the long-promised “Wall” along the southern border.

The President has made similar remarks in the past, but shutting down the government will offer little to no effect on our markets, as this is just considered political rhetoric.

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.