Dollar Strengthens as Gold Hangs In There August 7, 2017 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. The dollar reached a 13-month low last week, but is expected to make some modest gains, as the jobs report is another strong factor for an economy still doing well, all things considered. The labor market appears to be holding up nicely. As we start this trading week, gold is hanging on at just under $1,260, with silver doing the same at around $16.20. One thing about this month in particular is the lack of economic news which could readily move the spot price needle. At the time of this writing, analysts are split 50-50 on another interest rate hike when the Fed meets again. Next item of any significance will be the July report on the Consumer Price Index, which we’ll see by the end of the week. In geopolitical news, the U.N. Security Council body-slammed North Korea with a new set of sanctions on Saturday. In a unanimous vote, this new resolution targets North Korea’s primary trade exports, including coal, iron, lead, lead ore and seafood. They also target additional revenue streams, including banks and joint ventures with foreign investment. According to leading policy experts in the region, these sanctions should cut North Korea’s annual export revenue by up to $3 billion. As the old saying goes, “Hit ‘em in the pocketbook.” Pyongyang’s official new agency, KCNA replied this morning, “There is no bigger mistake than the United States believing that its land is safe across the ocean.” Precious metals have not yet reacted to this verbal escalation. This is a situation that bears close watching. Have a wonderful and productive week! Disclaimer: This editorial has been prepared by a Dillon Gage Metals senior staffer. 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 advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.