Weaker Dollar Gives Gold a Hand

The Market Gage - Dillon Gage's Precious Metals Newsletter

A weaker dollar and lower 10-year bond yields across the globe helping gold stay in positive territory.

The Gold ETF continues to see redemptions as financial advisors are reporting that most clients believe the equity market still has upside potential when and if the Dow reaches 20,000.

Wall Street gold traders still tell me they are content by staying short, as they believe our support levels of $1,132 in the February gold futures contract and $16.06 in the March silver futures contract will be a distant memory as we start 2017.

Kudos to my technical friends who nailed the next level of support yesterday in the March silver futures contract at $15.68 as the low yesterday around 9 am was $15.675. That’s amazing as that’s exactly where the Silver market sell off stopped.

Eurozone gold traders tell me all is winding down as we approach the holidays. They reported good physical demand was seen in the early part of December, but as of yesterday the physical market really got quiet.

Some domestic refiners still trying to move product before year-end are not finding too many interested buyers with the holiday week approaching.

Unless something out of the ordinary occurs, most dealers I spoke with expect a quiet ending in our metal markets thru year end.

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.