Risks Dominate News

Risks Dominate News

Overnight the price of Silver reached a new low for 2019 at $14.35 while sellers still seem to be overtaking the buyers in the Gold market.

I expect the selling pressure in these two markets to be short lived.

Geopolitical tensions in the Middle East have pushed oil prices higher this morning to over $73 dollars a barrel, compared with last week’s low of just under $70 dollars a barrel.

U.S. 10-year Treasury yields have broken thru the 2.39 percent level and the Dollar index is slightly lower giving the price of Gold some support.

Even with both Gold and Silver under pressure recently, geopolitical risks and a possible military confrontation with Iran could spark a major run to safe-haven assets like Gold.

There are just so many news stories out there: Iran, Venezuela, North Korea flexing their muscles, China negotiations breaking down, for the price of gold not to head higher in the near term.

And the cost of these China tariffs being passed on to the American consumer will eventually have an influence on the Equity markets.

Have a wonderful Monday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. 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. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.