Precious Metals Start Second Quarter on Quiet Note

The Market Gage - Dillon Gage's Precious Metals Newsletter

We start the second quarter of 2017 on a quiet note.

The price of gold slightly lower in negative territory this morning as we witness a slightly stronger dollar and higher bond yields.

Wall Street gold traders are starting to sound like the frustrated physical gold dealers I speak with daily, complaining about the lack of price movement in gold.

Financial advisors see little interest of late in the gold ETFs from retail investors. The Gold ETF overnight saw 155,000 ounces put into the funds by what it looks like are predominantly institutional inflows. If you look at the inflows and outflows in gold in the ETFs over the past few weeks in a bar graph, for the most part one can draw a pretty straight line across the top indicating the movement is just small volumes changing hands.

It’s no surprise that the love affair continues in the equity market, taking all the daily headlines
away from other markets.

CME future volumes on the low side this morning, indicating not too much interest from the Far East and Europe overnight. Even my trading friends in the Far East are tired of sitting on their hands and, just like their Wall Street counterparts, are dying for some action.

Even the guys who do a great job predicting the future price movement in gold using just charts have commented to me that their charts are starting to flat line, so to speak.

I must admit I feel the traders pain, because as I write these articles I too struggle to come up with interesting stories to share when the markets lack price movements.

So I will leave you with this thought.

My mother always said, “Count your blessings. If you wake up each morning and you are not in a hospital
bed it’s a good day.”

So as bad as it sounds, things could be worse.

Hang in there and 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.