Rebounding Dollar & Stocks Hit Gold

The Market Gage - Gold is Elemental

Walter Pehowich is off today. The commentary is from a senior Dillon Gage staffer.

It was a taxing day for the dollar and Dow

The U.S. dollar and world stock markets had a less than stellar day, yesterday, tanking as doubts about U.S. tax reform rose. (Senators Rubio and Lee tossed a monkey wrench into finalizing the bill over child tax credit concerns.) But NOW, the dollar is rebounding, crude oil is dipping and U.S. Stock indexes are moving to expected record highs.

Gold had clung to modest gains as investors pondered what some have described as a hawkish tone from the U.S. Fed during their December meeting, remaining above the $1,250 level throughout yesterday and even ticking up to near $1,260 on overnight Asian trading. But now the yellow metal is slipping back down towards $1,250.

Gold prices had also gotten support yesterday as the demand for retail products surged. I guess we know what is showing up in all those letters to Santa, hmm?

Also of note as we speed toward the end of 2017, gold finished positive for nine of the last 12 Januaries. So hanging onto to the yellow metal might just be a good New Year’s resolution.

2017’s Rock Star
Palladium continues to be an incredible story this year as it danced around another record high yesterday, jumping up $20+ an ounce taking it to the $!,040 range. The leap occurred even after the U.S. Retail sales report showed a softening in car sales. (Palladium role in catalytic converters is its main industrial use.) This year’s overall, global automotive demand, as well as a shortage of the metal has been a huge driver of its price. Just last week, platinum’s discount to fellow precious metal palladium reached its highest level since 2001. This morning, the metal is ebbing back on apparent profit-taking.

Over The Pond
Brexit negotiations continue with European leaders agreeing to allow the talks on a transitional period and future trading relationship to move to the next phase. The pound fell yesterday (losing 0.25% on the day) after European Commission President Jean-Claude Juncker gave a chilling comment on this next phase of talks. He said they would be harder than the first, which were already “very difficult.”

Have a wonderful weekend!

Disclaimer: This editorial has been prepared by a senior staffer at 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. 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.