Gold Drops on Up PPI Report November 9, 2018 Gold ETF redemptions continue, as investors in that market seem to be losing confidence that the price of Gold has any upside potential at this time. The price of spot Gold has now broken thru the lower end of the trading range after an unexpected Producer Price Index (PPI) number for October was released at 8:30 this morning. The PPI came in at up 6 tenths of one percent, that follows an unrevised up .2 percent, so October’s number just tripled. Economists expected the October PPI to be up 3 tenths, so this number is a huge surprise and if this trend continues should give the Feds ammunition for future rate hikes. PPI EX-Food and energy up 5 tenths, expectations were just up 2 tenths. The Ten-Year Treasury note now at 3.22 percent. This is real discouraging news for the Gold investor, as everyone was expecting the price of spot Gold to remain range bound, including myself. There is just no way to predict this unexpected extraordinary news, which in turn has strengthened the dollar and sent some long holders of Gold heading for the exits. The question now is how much damage has this report done to the Gold market? Technical levels of support now are at $1,208 in spot. I believe it is imperative we hold this level in spot, if not, we could test the $1,200 dollar level in short order. I had a totally different story to run this morning before the 8:30 PPI numbers. Matter of fact, I finished it and sent it out to my colleagues at Dillon Gage way before we opened the doors for business today. It just goes to show you that market sentiment can change in an instant, and there is just no way to predict what can happen. That’s why they invented stop loss orders. Have a wonderful Friday. 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.