The price of gold is trying to consolidate around the $1,220 level as the cloud of higher interest rates hovers above. Redemptions seen in the Gold ETFs overnight and open interest in the CME futures also seen declining in the past few days. Continue reading →
It is inevitable that the precious metal markets will be influenced right after comments of any FED governor. Continue reading →
It’s a little after 3 am on the east coast as I start my comment today, because I have to leave early this morning on business and will be driving, Continue reading →
Gold feeling pressure after comments from San Francisco Fed President John Williams and Atlanta Fed President Dennis Lockhart. Continue reading →
Metals start off the week in positive territory, with the dollar index in negative territory today. Stronger oil prices have some Middle East traders back in the gold market, Continue reading →
Controversy abounds after the comments made yesterday by Bank of England’s Governor Mark Carney. Looking at the coming vote June 23rd, Carney said, Continue reading →
Gold has a two-day recovery and remains in a “bullish mode” after all the bad news out of China on Monday had been absorbed. Continue reading →
ADDISON, TEXAS (May 11, 2016) – Dillon Gage Metals, an international precious metals wholesaler, is investigating what potential effect the 2016 election will have on the markets. Continue reading →
Markets under pressure this morning after gloom and doom Chinese data overnight. Also hitting the wires is news that Greek lawmakers have agreed to a pension and tax reform plan that will Continue reading →
Here is a story that caught my eye overnight that I wanted to share with my readers: China to make it easier for gold imports and exports to cross their borders. Continue reading →
Federal Reserve Bank of Atlanta President Dennis Lockhart said yesterday that the U. S. Financial markets may be underestimating the odds of a central bank rate increase in June. Continue reading →
We start the week viewing strong inflows into the gold ETF funds. Fueling the rally is a continued weakness in the dollar. Continue reading →
Gold hits a 7 week high and silver climbs to the highest in 15 months.
GDP growth reported yesterday for the first quarter 2016 was 0.5 percent. Continue reading →
Fed leaves rates unchanged as expected.
Fed continues its stance that rate hikes will be data dependent. Continue reading →
The FED ends their two-day meeting this afternoon with an announcement at 2pm Eastern. Continue reading →
We start the week viewing the price of gold higher due to a weak dollar. Continue reading →
Jump in, the water’s fine.
Good physical demand in the Precious Metals arena. Here are some interesting facts from the United States Mint: Continue reading →
Yesterday dealers reported good two way action in the physical gold market. Weaker dollar and weaker economic indicators were behind the rally in all four metals yesterday. Continue reading →
They’re at it again. New York Fed president William Dudley said today, “Gradual path to rate hikes are appropriate. Continue reading →
ADDISON, TX (April 7, 2016) – Dillon Gage Metals, an international precious metals wholesaler, is offering free tax advice ahead of the April 15th deadline. Continue reading →
The minutes from last month’s meeting indicated that members could not agree if a rate hike at the next FED meeting in April was in order. What they did agree on is that risks from a global economic slowdown warranted a cautious approach. Continue reading →
As the market waits for the release this afternoon of the FED minutes from the last meeting we see all four metals in negative territory. Continue reading →
Quiet opening today. Overnight, in the Far East and Europe most precious metal traders report that physical demand in gold is soft, but a little more interest is seen on the silver side from the retail investor. Continue reading →
The all anticipated report on job numbers for March was released this morning, showing an increase in 215,000 jobs. Continue reading →
Gold profit taking this morning after yesterday’s rally on dovish FED comments. Continue reading →
Gold rallies on her comments and breaks thru resistance levels as FED chairperson Janet Yellen said, it was appropriate for the FED to proceed “cautiously” in raising interest rates. Continue reading →
Gold fell to a 5-week low in the April contract overnight in Far East trading to $1,206 dollars per ounce. Continue reading →
Why negative interest rates can be a very bad thing for the European economy, but good for the price of gold. Continue reading →
Looking into my crystal ball for the rest of the year I see the following factors that affect the price of gold: Continue reading →
This is why I am always critical of our Federal Reserve Committee. Continue reading →
The Federal Reserve Bank leaves rates unchanged. Continue reading →
Quiet commodity markets ahead of the FED decision today at 2pm. Most expect no rate hike this time around. So we just wait to view the FED minutes in hope of receiving some clarity Continue reading →
I felt compelled to write some comments this morning after traveling to New York City yesterday for some meetings, while watching the gold market momentum change direction. Continue reading →
We open the week in a trading range, as we witnessed strong ETF inflows on Friday in all four precious metals. Continue reading →
Yesterday just before ECB president Mario Draghi was about to release his plan to stabilize the EU community, gold electronic trading programs kicked in bringing gold to the $1,237 level. Continue reading →
The ECB has cut its benchmark interest rate from 0.05 to ZERO as part of a extensive program to help the failing European economy. Continue reading →
The effect of negative interest rates:
Across the pond, Denmark, Sweden, and Switzerland (and let’s not forget Japan) have adopted a negative interest rate policy. Continue reading →
All eyes on the ECB meeting later this week. Continue reading →
Textbook technicals take gold to a new high for the year in the April contract to $1,275.90. I must acknowledge my friends who just trade off the gold charts. Continue reading →
ETFs continue to dominate the Precious Metals arena. ETF holdings up once again overnight, standing at 56.2 million ounces; Continue reading →
What role do the CME and ICE depositories play regarding the futures contract? First let’s define a futures contract. Continue reading →
I’ve been asked to talk about what could happen to the price of gold in counties that are battling deflationary conditions such as Switzerland, Sweden and Denmark. Continue reading →
ADDISON, TX (Feb. 26, 2016) – Dillon Gage Metals, an international precious metals wholesaler, decided to calculate the actual value of an Oscar award if it were made of solid gold. Which, sadly for the intended recipients, it isn’t. When coming up with the result, they sought the opinion of metallurgy experts in determining the parameters of the trophy and its corresponding value based on current gold prices.
Beginning with the dimensions of an Oscar award, they found that the statues are 13.5 inches high, each weighing 8.5 pounds. The statues are actually comprised of a pewter-like alloy called Britannia, which is 92 percent tin, six percent antimony and two percent copper.
CME gold open interest at 452, 839 contracts up overnight 7,549 contracts. CME gold open interest up 80,000 contracts since January 25, 2016. Continue reading →
Remember the movie The Wizard of Oz, when Dorothy and her crew were in Emerald City; the Wizard tried to intimidate them using smoke and mirrors? Continue reading →
Even with the price of gold and silver down yesterday and the equities putting in a solid performance, we witnessed large inflows into the gold and silver ETFs. Continue reading →
Ever since Chairperson Janet Yellen hinted that negative interest rates are on the table, numerous discussions have started in the media and all over the internet. Continue reading →
Dollar index virtually unchanged this morning just below the 97 level as gold continues to consolidate at these price levels. Continue reading →
Walter Pehowich is on vacation today, so our commentary comes from Stephen W. Miller, CEO of Dillon Gage Companies.
Yesterday was a continuation of the markets reflected in our last comments. Continue reading →
Walter Pehowich is on vacation today, so our commentary comes from Stephen W. Miller, CEO of Dillon Gage Companies.
This is President’s day and the overall markets are closed. Continue reading →
Walter Pehowich is on vacation today and Monday. Today’s commentary comes from Stephen W. Miller, CEO of Dillon Gage Companies.
What markets do day to day is interesting to watch. But, if you talk to the trade room at Dillon Gage, looking for them to tell you what will happen tomorrow, they just won’t. Continue reading →
For the first time in three weeks we’ve witnessed gold redemptions in the ETF shares. Continue reading →
My technician friends “AKA the gold chart traders” have been knocking at my door this morning bringing to my attention that the Gold Relative Strength Index now stands at 80.4 percent, Continue reading →
What’s happening to our gold market this morning? The dollar index is seen in positive territory and gold is up big. Economics 101 says that’s not supposed to happen. There must be some powerful forces effecting the gold price. Continue reading →
For over two weeks now Gold ETF holdings have increased in a big way, helping gold keep its bid posture. The question now remains, with the dollar steadying, will the retail investor continue to support the gold price by buying more shares? Continue reading →
One man’s opinion:
Something has to be done at the Fed. On Tuesday, Kansas City President Ester George said, “There has been NO substantial shift in the outlook that would justify pausing further gradual rate hikes.” Continue reading →
The tightening of financial conditions that have taken place since the FED began raising short–term interest rates in mid-December is a matter of considerable concern to the FED, Continue reading →
Longs still in control of the gold market as we continue to witness inflows into the gold ETF’s. Gold overnight broke thru the 200-day moving average at $1,132.00, but failed to gain momentum above as selling from the Middle
East put a damper on the rally.
Kansas City FED President Esther George said yesterday, “There has been no substantial shift in the outlook that would justify pausing further gradual rate hikes.” For some professional gold traders, these statements from the FED gives them mixed signals on whether to join the rally or sell into it.
Some gold traders said at these levels they would take a wait and see stance for the remainder of the week as they await Friday’s job numbers. Their preference is still playing in the oil arena, but if the market catches a bid and settles above the 200-day moving average today, some have indicated that they would abandon the oil market and concentrate on the gold market again.
Silver holding her head above water, rallying to $14.495 overnight in the March contract. With the lack of available one thousand oz. bars on the street, we have seen premiums increasing. The question remains, is this a indication of things to come as CME warehouse stocks continue to decline? And with the price of silver at these levels, we are witnessing some junior silver mining companies struggling to obtain financing to produce more silver.
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.
The price of gold was well supported over the last two weeks partially due to the increase of almost 2 million ounces into the ETF funds. Silver, in the same period was going in the opposite direction, seeing small redemptions in the ETF each and every day.
Fresh gold fund buying overnight helping gold hold its positive position this morning. As we start the week, we see the dollar index in negative territory, also a positive for the gold price. Gold seems to have some momentum at these levels and becoming a trend setter helping silver to catch a bid also.
Technical levels of resistance in gold to watch for is $1,132 in the April contract and $14.48 in the March contract for silver.
We still await some clarity on last week’s wild silver fixing numbers. As I said last week and still believe today, the process is broken and I wonder if there is a fix for the “fix”? The price is supposed to reflect a benchmark price at the time of day so that all the producers, hedgers and speculators can trade on, but after last week’s disaster, many are trying to figure out another way to fix a price. Some are going to the CME settlement price. But I don’t believe that’s a good alternative because it doesn’t reflect a London price which all the producers’ yearly contracts are based on and all sovereign mints use to sell their products. So I guess only time will tell if everyone can rely on the fix again? Sometimes it’s better just to leave things alone. I’m told it worked for 117 years, they had to be doing something right.
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.
For the time being, continued gold ETF inflows are helping to keep gold’s head above water. Going forward, with gold at these levels, I don’t expect to see new inflows continuing
into the ETF marketplace.
April $1,106 level is our first level of support, and in my opinion, for the market to hold its bullish sentiment we would have to hold that figure. With the lack of professional gold traders participating in the market, I expect it will create some downside pressure in the price short term. As I indicated in my previous comment, some gold traders have jumped ship and gotten involved in the crude oil market.
Second day in a row the LBMA silver fixing price was set below where the spot market was
trading. Today not as dramatic as the $ .80 cents difference yesterday, but still a concern for most participants. The spot silver price at the time of the fix was around the $ 14.20 area as the fix was settling at $14.08. I wonder if this pattern continues, if a fix ( no pun intended ) to this problem is available.
It looks to me that the electronic fixing platform for silver is becoming a market of its own with very little liquidity. This can become a serious problem for the world producers, government mints and refiners who have annual contracts selling and hedging their production on the silver fixing price.
Have a wonderful weekend.
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.
