After the poor jobs number on Friday, the market now awaits comments from Fed Chairwoman Janet Yellen. Ms. Yellen scheduled to speak today at 12:30 eastern time in Philadelphia.
When I first started in this business almost 40 years ago, the news items that seemed to move the gold market the most, were news on inflation and supply and demand concerns. Now for the most part, the market holds its breath on every comment made by any Fed official regarding interest rates, watching the action in the dollar and unemployment / jobs news.
Over the years with the advancements in technology, going from an open outcry precious metal arena, run by floor brokers, to a faster than the speed of light electronic trading platform, the price of gold has no trouble moving large volumes with large price swings. Friday morning, right after the job numbers were released, we witnessed a $34 dollar move to the upside in gold, in a blink of an eye. In the old days, a move like that could take hours, not minutes.
Now more than ever we truly have a global economy, and before the Fed considers any move to increase interest rates, they can’t ignore the issues that move the markets globally. Negative interest rates in some countries, the Brexit vote June 23rd, the economic cost to Europe regarding the migrant crisis has to be on their minds.
And how can they ignore, our own problems? The increasing cost of our entitlement programs, our ever increasing nations debt issues, a congress in locked down mode and seemingly the most important issue facing our nation, who will be our next president?
With all these problems, has physical gold ever shined brighter? Maybe Ms. Yellen will give us some insight today.
In the meantime, I’ll just reminisce when life was a lot simpler. What baseball players card should I use with a clothespin on my bikes’ spokes, to make that great loud clicking sound and how about going to the store to see newest Duncan yoyo that was just released.
Have a wonderful Monday.
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.