Brexit Rumors Lift Gold January 10, 2018 The price of Gold was little changed in the Asian overnight session as much higher Ten-Year Bond Yields were seen across the globe. As stories started to emerge overnight about questions of a possible “no deal” on the Brexit negotiations, spec buying came out of nowhere in the EU bringing the price of Gold on the February CME Futures contract up from $1310.00 to its overnight high of $1328.60. The Guardian is reporting this morning that UK companies working in fields from development to aviation and haulage are being warned that the EU will shut down their ability to operate across Europe and block funding streams from Brussels in the event of a “no deal” Brexit. Goes to show you that Europe is quick to react to these kinds of stories and as one Gold dealer in Europe put it, “We were blindsided by all the orders that emerged as questions about the Brexit negotiations hit the wires.” He also indicated that he believes that short covering helped fuel the rally this morning. Currently here in the States, we are looking at a strong uptick in the U.S. Ten-Year Treasury yields, up four big numbers currently trading at 2.59 percent, its highest level since last March. If it wasn’t for a much weaker U.S. Dollar today, one would expect the price of gold to be in negative territory. As Europe winds down their trading session this morning, I expect the overnight Gold rally to reverse and lower Gold prices to been seen. In other words, I believe you have seen the highs of the day already. A New York Gold trader told me this morning, “You should tell your readers that over the last 30-days, Gold open interest on the CME is up over 100,000 contracts and, along with Copper and Oil futures in the New Year, Hedge Funds are starting to reallocate funds into commodities. One prominent Oil trader said this morning, “I expect $70 dollar oil to be reached in the next few months.” The way the price of oil has been trading, it might be sooner than that. Silver just traveling in a side car along for the ride as excess silver still dominates the physical market, keeping a lid on any sustained rally in that market. Have a wonderful Wednesday. 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.