FLASH – Fed Chair Speaks – Gold Rallies November 28, 2018 Fed Chairman’s comments rallies the price of Gold and Equities. The buzz word seems to be we are “ JUST BELOW “ just neutral status regarding rate increases. In other words, his comments are being viewed as “ dovish “. The term ‘Neutral “ seems to be between 2.50 and 3.50 percent. So with a December rate hike and one or two more in 2019 that should be enough to put the Fed where they want to be. Keep in mind these increases are always “data dependent”. The rally in Equities and Precious Metals could be short lived in the event the G20 talks fail to achieve some sort of agreement. (Mr. President: “What an opportunity” to right the ship with a trade agreement with China and a pause in future rate hikes.) Some Wall Street Gold traders I just spoke with after the headlines, reiterated that they are still waiting for a breakout in the price of Gold above the $1,232 level before entering the Gold Market. But BEWARE, this rally, both in the price of Gold and in Equities. for the most part is algorithm driven and a short covering rally. In other words, this rally might be short lived and not have enough legs to make new highs and continue its upwards posture. Next boost can only come from the success of a trade agreement with China. If that doesn’t happen at the G20 watch out below. Enjoy the rest of your day. 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.