FED Watch.
Precious metal prices are modestly lower this morning as we await the decision from the FOMC meeting today at 2pm Eastern time.
We expect them to provide further guidance on when they expect to raise rates. Still the odds are very low that a rate hike will happen today or in July and a 30 percent chance in September. I expect the odds might change a bit after hearing what they have to say today.
The Minnesota SF 3175: Bullion Product Dealers Regulation Authorization was recently signed by Minnesota Gov. Mark Dayton. This major legislative effort, led by the Industry Council for Tangible Assets (ICTA), reforms the most troublesome law for coin dealers in modern memory.
The state’s “Bullion Coin Dealer Law,” which was passed in 2013, applied to dealers at all levels of the industry and throughout the country, and imposed onerous regulations that were impossible to comply according to ICTA’s Chairman, Harry Miller, “Most coin dealers in the U.S. probably had no idea they were subject to this Minnesota law. But many were affected, even those who thought they had never done business in the state, because of the broad way in which the law was written.”
ADDISON, TEXAS (June 14, 2016) – Dillon Gage Metals is investigating what potential effect the upcoming Brexit vote may have on the global precious metals market.
On June 23, British voters will cast ballots to determine whether or not the U.K. will remain in the European Union. According to Dillon Gage Metals Chairman Stephen W. Miller, if the Brexit measure passes, the effects may positively impact long-term value in the precious metals market.
Good morning from the IPMI conference in Phoenix, Arizona, where hundreds of traders and dealers from around the world exchange ideas in the Precious Metals markets. You can see the hotel lobby fill up with it all the traders and dealers every hour on the hour for meetings. Companies are here trying to establish new relationships, rekindle old ones and exchange ideas in technology.
Dillon Gage’s cutting edge technology continues to evolve and stands out as the leader in physical electronic trading platforms. Matter of fact, I didn’t see or hear of any other firm offering a comparable trading platform like “FIZ” trade. For any precious metals business, a precious metals platform is a must in order to compete with the worldwide electronic algorithms that move the price of metals in a heartbeat.
We’ve witnessed gold up almost 5 percent this week after the disappointing jobs number last Friday.
Hitting the news wires yesterday was a story about billionaire George Soros getting back in the gold market. Soros Fund Management, which manages $30 billion for Mr. Soros and his family, sold equities and bought gold and mining shares. Mr. Soros indicates that he sees a bleak outlook for the global economy, and has directed some of his companies’ investments into the metals arena due to his concerns about political issues in China and Europe.
The following chart includes the year to date totals from the U.S. Mint as of 5pm on June 9th. Continue reading →
The World Bank cut its 2016 global growth forecast today to 2.4 percent, down from the 2.9 percent estimated in January. The move is due to sluggish growth in advanced economies, low commodity prices, weak global trade and diminishing capital flows.
Gold, liking that kind of news, is trading up $ 13.00 on the day, at the time of this report. Silver, the so-called “poor man’s gold,” is trading either side of $17.00 this morning (consider just a week ago the worry was, are we going to hold the $16.00 dollar level?).
I just finished listening to Chairwomen Yellen’s 30-minute speech regarding the possibility of future rate hikes. Continue reading →
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.
It will be very interesting to hear what the Fed presidents NOW have to say after this very weak May jobs report. Continue reading →
The Department of Defense expanded the Military Lending Act (MLA) regulation last year. It becomes effective for pawn transactions on October 3, 2016. Are you ready? Continue reading →
The following chart includes the year to date totals from the U.S. Mint as of 5pm on June 2nd. Continue reading →
Now that the minutes of the April FOMC meeting have been revealed and the market has absorbed the news, market participants now sit on the sidelines awaiting U.S. data to be released later in the week before considering entering the gold market again. Continue reading →
Ok, she folded under the pressure. Being a compassionate person, feeling sorry for the poor Wall Street Bond trader delaying his weekend trip to the Hamptons, Fed Chair Yellen answered the question we were all waiting to hear during her interview today with Harvard professor Greg Mankiv. Continue reading →
Will she or won’t she? Continue reading →
The price of gold is trying to consolidate around the $1,220 level as the cloud of higher interest rates hovers above. Redemptions seen in the Gold ETFs overnight and open interest in the CME futures also seen declining in the past few days. Continue reading →
It is inevitable that the precious metal markets will be influenced right after comments of any FED governor. Continue reading →
It’s a little after 3 am on the east coast as I start my comment today, because I have to leave early this morning on business and will be driving, Continue reading →
Gold feeling pressure after comments from San Francisco Fed President John Williams and Atlanta Fed President Dennis Lockhart. Continue reading →
Metals start off the week in positive territory, with the dollar index in negative territory today. Stronger oil prices have some Middle East traders back in the gold market, Continue reading →
Controversy abounds after the comments made yesterday by Bank of England’s Governor Mark Carney. Looking at the coming vote June 23rd, Carney said, Continue reading →
Gold has a two-day recovery and remains in a “bullish mode” after all the bad news out of China on Monday had been absorbed. Continue reading →
ADDISON, TEXAS (May 11, 2016) – Dillon Gage Metals, an international precious metals wholesaler, is investigating what potential effect the 2016 election will have on the markets. Continue reading →
Markets under pressure this morning after gloom and doom Chinese data overnight. Also hitting the wires is news that Greek lawmakers have agreed to a pension and tax reform plan that will Continue reading →
Here is a story that caught my eye overnight that I wanted to share with my readers: China to make it easier for gold imports and exports to cross their borders. Continue reading →
Federal Reserve Bank of Atlanta President Dennis Lockhart said yesterday that the U. S. Financial markets may be underestimating the odds of a central bank rate increase in June. Continue reading →
We start the week viewing strong inflows into the gold ETF funds. Fueling the rally is a continued weakness in the dollar. Continue reading →
Gold hits a 7 week high and silver climbs to the highest in 15 months.
GDP growth reported yesterday for the first quarter 2016 was 0.5 percent. Continue reading →
Fed leaves rates unchanged as expected.
Fed continues its stance that rate hikes will be data dependent. Continue reading →
The FED ends their two-day meeting this afternoon with an announcement at 2pm Eastern. Continue reading →
We start the week viewing the price of gold higher due to a weak dollar. Continue reading →
Jump in, the water’s fine.
Good physical demand in the Precious Metals arena. Here are some interesting facts from the United States Mint: Continue reading →
Yesterday dealers reported good two way action in the physical gold market. Weaker dollar and weaker economic indicators were behind the rally in all four metals yesterday. Continue reading →
They’re at it again. New York Fed president William Dudley said today, “Gradual path to rate hikes are appropriate. Continue reading →
ADDISON, TX (April 7, 2016) – Dillon Gage Metals, an international precious metals wholesaler, is offering free tax advice ahead of the April 15th deadline. Continue reading →
The minutes from last month’s meeting indicated that members could not agree if a rate hike at the next FED meeting in April was in order. What they did agree on is that risks from a global economic slowdown warranted a cautious approach. Continue reading →
As the market waits for the release this afternoon of the FED minutes from the last meeting we see all four metals in negative territory. Continue reading →
Quiet opening today. Overnight, in the Far East and Europe most precious metal traders report that physical demand in gold is soft, but a little more interest is seen on the silver side from the retail investor. Continue reading →
The all anticipated report on job numbers for March was released this morning, showing an increase in 215,000 jobs. Continue reading →
Gold profit taking this morning after yesterday’s rally on dovish FED comments. Continue reading →
Gold rallies on her comments and breaks thru resistance levels as FED chairperson Janet Yellen said, it was appropriate for the FED to proceed “cautiously” in raising interest rates. Continue reading →
Gold fell to a 5-week low in the April contract overnight in Far East trading to $1,206 dollars per ounce. Continue reading →
Why negative interest rates can be a very bad thing for the European economy, but good for the price of gold. Continue reading →
Looking into my crystal ball for the rest of the year I see the following factors that affect the price of gold: Continue reading →
This is why I am always critical of our Federal Reserve Committee. Continue reading →
The Federal Reserve Bank leaves rates unchanged. Continue reading →
Quiet commodity markets ahead of the FED decision today at 2pm. Most expect no rate hike this time around. So we just wait to view the FED minutes in hope of receiving some clarity Continue reading →
I felt compelled to write some comments this morning after traveling to New York City yesterday for some meetings, while watching the gold market momentum change direction. Continue reading →
We open the week in a trading range, as we witnessed strong ETF inflows on Friday in all four precious metals. Continue reading →
Yesterday just before ECB president Mario Draghi was about to release his plan to stabilize the EU community, gold electronic trading programs kicked in bringing gold to the $1,237 level. Continue reading →
The ECB has cut its benchmark interest rate from 0.05 to ZERO as part of a extensive program to help the failing European economy. Continue reading →
The effect of negative interest rates:
Across the pond, Denmark, Sweden, and Switzerland (and let’s not forget Japan) have adopted a negative interest rate policy. Continue reading →
All eyes on the ECB meeting later this week. Continue reading →
Textbook technicals take gold to a new high for the year in the April contract to $1,275.90. I must acknowledge my friends who just trade off the gold charts. Continue reading →
ETFs continue to dominate the Precious Metals arena. ETF holdings up once again overnight, standing at 56.2 million ounces; Continue reading →
What role do the CME and ICE depositories play regarding the futures contract? First let’s define a futures contract. Continue reading →
I’ve been asked to talk about what could happen to the price of gold in counties that are battling deflationary conditions such as Switzerland, Sweden and Denmark. Continue reading →
ADDISON, TX (Feb. 26, 2016) – Dillon Gage Metals, an international precious metals wholesaler, decided to calculate the actual value of an Oscar award if it were made of solid gold. Which, sadly for the intended recipients, it isn’t. When coming up with the result, they sought the opinion of metallurgy experts in determining the parameters of the trophy and its corresponding value based on current gold prices.
Beginning with the dimensions of an Oscar award, they found that the statues are 13.5 inches high, each weighing 8.5 pounds. The statues are actually comprised of a pewter-like alloy called Britannia, which is 92 percent tin, six percent antimony and two percent copper.
CME gold open interest at 452, 839 contracts up overnight 7,549 contracts. CME gold open interest up 80,000 contracts since January 25, 2016. Continue reading →
Remember the movie The Wizard of Oz, when Dorothy and her crew were in Emerald City; the Wizard tried to intimidate them using smoke and mirrors? Continue reading →
