Lots Of News Headlines Impacting Precious Metals

The Market Gage - Dillon Gage's Precious Metals Newsletter

Here are the Friday morning headlines we are watching that are impacting precious metals.

Overnight, selling out of the Far East brought the yellow metal down to $1,194.50 in the April CME Futures contract.

This morning, gold now seen gaining momentum, reversing the most recent sell bias indicators trading over the $1,200 dollar level this morning.

The reason for the recovery this morning is a weaker dollar and softer ten-year treasury yields.

The strongest component in the gold price is the action in the U.S. dollar vs. other world currencies.

The February jobs report revealed that 235,000 jobs were created. The street was looking for 200,000.

ETF outflows continue across all four metals.

CME FED watch tool is calling for a 90.8 percent of a 25 basis rate hike at the March Fed meeting next week.

All eyes still on the upcoming elections in Holland, France, Germany and Korea as potential gold price movers.

Equities are liking the jobs report, calling for a higher opening this morning.

One financial advisor said to me this morning, “The equity markets are like a game of Texas holdem. Players think they have the best hand and are all in the game. I haven’t had one call asking for anything else other than equity action.”

My take is that this rally in both gold and silver will be short lived as nothing fundamentally has changed from yesterday. The weaker dollar just chasing out some nervous shorts. I expect the $1,200 dollar level to be tested and traded thru later in the day.

Have a wonderful weekend.

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