Gold Feels Comfy just under $1,200? September 12, 2018 Walter Pehowich is off today. The insights were prepared by a senior analyst. It appears, Gold feels comfy just under $1,200. The overhanging concerns over tariffs combined with the strong U.S. Dollar are keeping the yellow metal in the just-under-$1,200 neighborhood. There have been some indication of bargain hunting, but not enough to give a significant boost. There was a little movement this morning when the U.S. Producer Price Index (PPI) numbers were released. Gold got a bit of a bounce when the PPI for August fell about .1%, which was below expectations. Economists were predicting a .2% increase. This was the first decline for the PPI in 18 months. The annual PPI was also lower than expected, hitting 2.8% instead of the expected 3.2%, while annual core inflation came in at 2.3%, lower than the 2.7% consensus forecasts. Any ammunition for the FED to NOT raise interest rates is always welcome in the Gold market. Checking in with Gold’s little sister, Silver dropped yesterday to its lowest point in 2.5 years, challenging the $14 threshold. This created the highest Gold-Silver ratio in over 20 years, at just shy of 85, far above 50 which is the historical average. At the time of this post, December Comex gold futures were slightly down .40 an ounce at $1201.80 and December Comex silver was up $0.012 at $14.165 an ounce. Have a wonderful Wednesday Disclaimer: This editorial has been prepared by a senior analyst 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.