Global Bond Yields Boosting Gold July 17, 2017 Lower Ten-year Bond yields across the globe are giving the price of gold a boost this morning as gold is knocking on the door of the next resistance level at $1,232 in the August contract. This was the level that the Wall Street traders were looking for as they claim we need to settle above this level for the rally to continue. The Dollar Index looking weak, hovering just over the 95 level, after trading down to 95.18 the lowest level seen since September 2016. Still far away from last year’s low hit on May 2nd at 91.91. If you are interested, Gold was trading around $1,300 dollars when the low in the Dollar Index was met. Silver ETFs seem to be the metal of choice for the equity investor as the inflows into the funds continue. Currently, a total of almost 677 million ounces are held in the Silver ETF funds. Physical dealers still reporting decent demand for silver products any time the market dips below $16.00. As I hear quite often when speaking to Financial advisors, the story they tell is that most investors would rather buy Silver because they feel it’s a better investment with the potential to triple in value whereas for gold to triple we would have to have a total economic meltdown. Over the Pond Not so fast you ain’t getting away that easy, says the EU… Just like any contested divorce, Britain will have to pay the EU a substantial amount of money to leave the EU. The EU will press Britain to pay its share of unpaid bills and liabilities as Britain is expected to seek a share of EU assets. Currently, Britain’s liabilities may exceed 100 billion Euro. (If that’s the case, I want to be one of the lawyers working on those negotiations.) With the exit scheduled for March 2019, an arm wrestling negotiation is expected and seen as a stumbling block to hold that date as Bible. There seems to be so much at stake that it’s my belief that date will have to be delayed as it’s seen that both sides have begun to dig in their heels. If the talks are delayed, EU member states would need to unanimously agree to an extension of talks beyond two years under Article 50 of the EU rulebook. The talks are expected to be tough, because EU leaders may want to make an example of Britain in order to discourage others from leaving. As the saying goes, somebody has to go first….. Back to our shores How ironic, after we ran the story of Bit Coin on Friday, later that day, a man was seen a row or two behind the Chairwoman Janet Yellen on Capitol Hill holding up a sign that said “Buy Bitcoin.” The guy is now a celebrity in the Bitcoin community. Within hours, this guy received almost $16,000 dollars in donations. Most were small donations, but he did receive three donations worth $2,400 from three bit coin “Whales” as they are called, as each one of those donations were equal to one Bit Coin. The Fed Friday’s economics figures were a blow to all the “hawks” on the Federal Reserve Board. Looking at the FOMC Watch Tool today, it gives the chance of a rate at this month’s Fed meeting on July 26 at only 3 percent. Also, Friday’s economic numbers have put a damper on a September rate hike showing only an 8 percent chance. And for those who like to follow this data, it’s not ’til December 2017 where we see a 43 percent chance of the next rate hike. So to all the Hawks on the Fed Board, no more comments until the DECEMBER meeting please. 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. 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