Precious Metal Markets Looking For A Direction.

The Market Gage - Dillon Gage's Precious Metals Newsletter

With a steady dollar index and consolidating bond yields, the price of Gold and Silver is seen this morning in positive territory.

At the time of this report, February gold is trading right in the middle of the most recent trading range between $1,160 and $1,190. So I think it’s safe to say that all the negative news effecting gold and silver prices of late seems to have been absorbed by the market and in turn the market seems to be building a base for higher prices to come.

In order for the market to trade higher, my technical friends remind me of the previous level of support at $1,172 in the February gold contract. We must hold this level otherwise they indicate a testing of the most recent low in the February contract at $1,158 will be in jeopardy.

Everyone seems to be happy with silver back around the $17.00 level as indicated by the small inflows overnight into the Silver ETFs. The Gold ETFs still seeing continued redemptions and I expect that will not change until the market heads higher or the Fed meeting results are released next week.

The industrial metals to include Silver, Platinum and Palladium and the base group of metals should fair better under the Trump administration as infrastructure seems to be on the top of his list in his first 100 days in office.

A reminder, in the event that gold rallies from here, the level of resistance is $1,192 in the February contact.

Some Wall Street traders I spoke with this morning agree with the technical levels. Matter of fact one guy indicated that these are the exact numbers he has plugged into his algorithm platform. I guess with the lack of any new news in the market place, working off the charts seems to be the only way to trade Gold and Silver today.

Have a wonderful Wednesday.

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.