The Market Gage - Dillon Gage's Precious Metals Newsletter

Dollar Strengthens as Gold Hangs In There

Labor Market Holds, Dollar Makes a Comeback and Somebody’s “Un” Trouble Overseas…

Are the rallies in the gold and silver market starting to lose enthusiasm? Many leading analysts are saying that on the heels of a better than expected July jobs report, the U.S. dollar is starting to strengthen, which is set to temper market interest.

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The Market Gage - Dillon Gage's Precious Metals Newsletter

Gold Ticks Down On Positive Jobs Report

Champagne on Wall Street and Jobs, Jobs, Jobs…

The Dow hit 22,000 this week, achieving a new record high, however precious metals have been holding their own despite the big party on Wall Street. Those loud popping noises you’ve been hearing are all the champagne bottle corks flying in every direction.

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The Market Gage - Dillon Gage's Precious Metals Newsletter

What Will It Take To Move Gold Past $1,300?

For the price of Gold to trade higher, many of the Wall Street Gold traders were calling for a settlement in the Dollar index below the 93.50 area. And that’s exactly what they got and the price of Gold didn’t move. Matter of fact, the Dollar Index traded below the 93.00 level and still no movement in the price. It wasn’t until we had seen the U.S. 10-year Treasury Yield drop from 2.32 percent to 2.27 percent that Gold rallied 5 dollars.

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The Market Gage - Dillon Gage's Precious Metals Newsletter

Retail Investors Likely to Focus On Equities This Week

Quite a few of the companies reporting earnings this week will keep the retail investor focused on equities. So far this quarter, 73 percent of companies that have reported earnings have beat the street estimates, giving investors the confidence that the equity market rally has more room to the upside even if Washington is not capable of getting anything done.

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The Market Gage - Dillon Gage's Precious Metals Newsletter

GDP Report Gives Gold A Lift

Our morning market news finds the price of Gold receiving a boost today at 8:30 Eastern Time, when the GDP report was released. A second quarter result of 2.6 percent and a lower revision on the first quarter number rallied the price of Gold five dollars, just falling short of the next level of resistance in the December Gold futures contract at $1,274.

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Fed Comments Weaken Dollar – Boost Gold

If you remember in Monday’s commentary in The Market Gage, Wall Street Gold Traders were calling for the dollar index to test the 93.50 area sometime this week. Well, they were right, but I don’t think they really knew what the catalyst would be.

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The Market Gage - Dillon Gage's Precious Metals Newsletter

The Dollar Rises and Gold Slows

First, a look at our market this morning. A Wall Street Gold trader I spoke with said, “I can’t get too excited with Gold at these levels so I guess I’ll just stick with trading currencies for the time being.”
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The Market Gage - Dillon Gage's Precious Metals Newsletter

Weak Dollar Continues Boosting Gold Rally

The rally in the price of Gold continues this morning as the sell-off in the Dollar Index continues. Overnight the Dollar Index had a very tight trading range, showing a high of 94.08 and a low of 93.82. Which, by the way, is a 13-month low reached this past Friday.

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The Market Gage - Dillon Gage's Precious Metals Newsletter

Weaker Dollar Sparks Gold Climb

Good news for the Wall Street Gold traders this morning as the price of Gold reached their levels and now they can get down to the Wall Street heliport early and take a 35 minute ride to their homes in the Hamptons.
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The Market Gage - Dillon Gage's Precious Metals Newsletter

Quiet Overnight Trading Keeps Gold Static

Quiet overnight trading abroad is keeping the price of Gold virtually
unchanged. Some Wall Street gold traders long from the $1,232 area
are hoping for this rally to continue and would be satisfied heading
for the exits around the $1,248- $1,252 area. In the event the price of Gold
sells off, they will be watching the $1,232 level on the downside. The reason I mention these fellows is that the amount of volume they transmit into the market can influence the price.

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The Market Gage - Dillon Gage's Precious Metals Newsletter

Global Bond Yields Boosting Gold

Lower Ten-year Bond yields across the globe are giving the price of gold a boost this morning as gold is knocking on the door of the next resistance level at $1,232 in the August contract. This was the level that the Wall Street traders were looking for as they claim we need to settle above this level for the rally to continue.
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The Market Gage - Dillon Gage's Precious Metals Newsletter

Slow Inflation and Low Retails Sales Lift Precious Metals

The price of gold and silver in rally mode this morning after disappointing economic data was released. The Consumer Price Index was unchanged in June, putting a damper on the FED’s ability to raise rates any time soon. Retail Sales Report was down 0.2 percent when the street was expecting a positive number.
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The Market Gage - Dillon Gage's Precious Metals Newsletter

Mixed Bag for Precious Metals as Week Winds Down

Walter Pehowich is on vacation through July 10th. Today’s comments are from a Dillon Gage senior staffer.

There’s good news, there’s in-between news and then there’s not-so-good news. As the week draws to a close, precious metals have seen key market indicators fluctuate wildly as market interest remains relatively flat. This is why prognosticators get paid the big bucks. Gold is currently pricing slightly down at $1,243 and silver has tipped up in the last hour at $16.67.

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The Market Gage - Dillon Gage's Precious Metals Newsletter

Precious Metals Dipping Down On Mixed Indicators

A mixed bag of indicators to start the day as we see a slightly weaker dollar and stronger Ten Year Treasury yields. Just a week ago we were seeing Ten Year U S Treasury yields at 2.10 percent, now today showing 2.17 percent this helping to keep a cap on any gold rally.

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The Market Gage - Dillon Gage's Precious Metals Newsletter

Gold Recovers A Little Ground

The price of gold is in recovery mode ahead of the Fed decision today, driven by a weaker dollar and lower bond yields. Ten-year Treasury bonds across the globe are all showing softer yields today.
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The Market Gage - Dillon Gage's Precious Metals Newsletter

Precious Metals Anticipate This Week’s Fed Action

All eyes are locked onto this week’s FOMC meeting, set for Tuesday and Wednesday. The clear consensus appears to be that the Federal Reserve will slightly raise U.S. interest rates. Most traders and investors are also watching to see if the Fed acts to reduce its overblown balance sheet of government securities.

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The Market Gage - Dillon Gage's Precious Metals Newsletter

Stronger Dollar On UK Election Lowers Gold

A stronger dollar is seen this morning after the surprise result in the UK election yesterday. As the results were tallied, the Pound Sterling took a dramatic drop in value and even the Euro was under pressure as the currency world turned to the US Dollar for stability. Subsequently, the price of gold continues to lose ground, even though just a few days ago it looked like the $1,300 dollar level was within reach.

The UK election

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The Market Gage - Dillon Gage's Precious Metals Newsletter

Gold Pauses As Dollar Ticks Up

The price of gold under some pressure this morning as both the dollar and Ten-Year Treasury yields are seen in positive territory. Recent previous declines in both markets have been giving the price of gold a boost, but today’s reversal just seems to be a pause in the action as we expect the decline in the dollar and softer Ten
Year Treasury yields to continue.

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The Market Gage - Dillon Gage's Precious Metals Newsletter

Gold Hits Six Week High

A good start to the week as gold reaches a six week high. What makes it more impressive is the fact that the price of gold is higher today even with a stronger dollar and higher treasury yields.

Overnight over 206,000 ounces were added to the Gold ETF helping support additional gains.

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The Market Gage - Dillon Gage's Precious Metals Newsletter

Job Report Boosts Precious Metals

We were ending the week with all four metals in negative territory, but as soon as the Non-Farm payroll number was released at 8:30, all four metals had a healthy recovery and traded higher. Non-Farm payroll figures came in at 138,000 after the street expected 185,000. The report shows retail and manufacturing jobs declined, possibly giving the Fed board something to think about before raising rates at the June meeting. In addition to a poor May job report, significant downward revisions to the March and April job reports were also released.
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The Market Gage - Dillon Gage's Precious Metals Newsletter

Gold Breaks Through Overnight On Soft Treasury Yields

First quarter GDP numbers were released this morning at 8:30 EDT as the Commence Department revised their previous number from 0.7 to 1.2 percent. Consumer spending was stronger than initially thought, but later in this report you will see that the spending seems to be up on “borrowed money.” Continue reading →