FLASH GAGE – How Will U.S.’s Big Bomb Drop Affect Gold

Flash Gage - News Headlines that Impact precious metals as they happen.

The U.S. just dropped the mother of all bombs on an ISIS tunnel in Afghanistan. This is the largest non-nuclear bomb the U.S. has in its arsenal.

The Trump administration at the same time issues a picture of our military capabilities of our aircraft carriers ready to strike North Korea if they send up a missile or even worse test their nuclear capabilities for the sixth time possibly on Saturday commemorating their founders birthday.

The gold market has no reaction to the story as we see the dollar stronger and the ten year treasury softer keeping gold in its place. But equities are selling off the news. But as the equity markets sell off I expect gold to catch another bid.

This weekend we all should be watching closely and I mean closely all the news out of North Korea as they celebrate their holiday on Saturday. There is no telling what Kim Jung-un is capable of but one thing is for sure based on what we seen from President Trump so far if he acts we are coming and gold will be a benefactor to his actions.

I’m curious to see where the markets will open up on Monday if anything happens.

Have a wonderful Thursday.

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.