Walter Pehowich is on vacation through July 10th. Today’s comments are from a Dillon Gage senior staffer.
There’s good news, there’s in-between news and then there’s not-so-good news. As the week draws to a close, precious metals have seen key market indicators fluctuate wildly as market interest remains relatively flat. This is why prognosticators get paid the big bucks. Gold is currently pricing slightly down at $1,243 and silver has tipped up in the last hour at $16.67.
The good news – stock market indexes are moving round and round like a fidget spinner. If the equities market does begin to deflate, gold and silver prices should take up the slack and come out on top with a price bump.
The in-between news – the geopolitical situation has gone from a boiling point to a simmer. Yet, it’s still strange to think of how many global factors are still in play. The wick is being turned up on a military response to North Korea, ISIS is facing imminent defeat in Iraq (some estimates peg the remaining fighters at under 200 total) and the current status of the Saudi Arabia vs. Qatar standoff.
Now for the not-so-good news – signs are pointing to a more hawkish tone from central banks around the globe. They may be ready to subscribe to the U.S. Fed’s policy of recent rate hikes, of which several are still currently locked down by a decade’s worth of quantitative easing programs. If the QE programs are phased out further, it could weigh on precious metals. However, the ongoing shaky global politics and D.C. melodrama would likely soften any impact. And it’s always good to remember that there can be a golden/silver lining to this scenario as lower prices can present a buying opportunity for those looking to dollar cost, average down or enter the market at a more favorable price.
Meanwhile, in the States, Congress goes on recess without a health care vote and presumably, fireworks sales will skyrocket. Pun intended.
Have a wonderful and SAFE 4th of July Holiday
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