Precious Metals Investors Waiting on the Sidelines

The Market Gage - Dillon Gage's Precious Metals Newsletter

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.

The hawkish sentiment expressed by a majority of FED governors has chased investors out of the gold market, dropping gold 5 percent days after the minutes were released.

A very quiet overnight trading session as we see gold slightly higher, mainly due to a weaker dollar, and off the lows earlier in the week when we saw gold test the $1,200 dollar level.

Weak fundamentals not helping the yellow metal as refiners as well as gold dealers report sluggish demand.

Silver trading either side of $16 dollars as investors are hoping for weak economic data in the coming weeks, weakening the FED’s hand to raise rates. Demand for silver products also on the quiet side as reported by the majority of dealers we spoke to.

CME reports a 23 percent chance of a rate hike in June and a 59 percent chance in July.

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.