Gold Off 14-Month High June 10, 2019 Gold prices slipped from a 14-month high after an agreement between the U.S. and Mexico appeared to avert a trade war, reducing demand for the yellow metal as investors became less risk averse. Comex gold and silver futures dipped on the headlines. August Gold futures sitting at $1,333.3, off $12.4 at the time of this report and August Silver is at $14.770, down 0.295. However, several bullish factors still support gold, keeping it near its highest level since April 2018, despite a stronger Dollar Index. In fact, after dropping about $10 when the market opened yesterday, spot gold has plateaued around $1230. The supporting factors include growing tensions between the U.S. and China and speculation that the U.S. Federal Reserve will cut interest rates. The CME FedWatch Tool is citing an 82% chance that the Fed will ease the interest rates in their July meeting. China boosted its gold purchases for the sixth consecutive month in May, taking its total to 1,916 tons, the Financial Times reported. The People’s Bank of China bought 15.6 tons of the metal last month, it said, citing the central bank. That brings purchases to 74 tons since the end of November, when the country began ramping up, the FT said, citing Refinitiv data. The value of the reserves has risen to $79.8 billion. The worsening trade dispute between the U.S. and China dominated a meeting of Group of 20 finance ministers and central bank governors over the weekend in Japan. In the final communique, policymakers said they “will continue to address risks and stand ready to take further action” amid “intensifying” tensions on global trade and geopolitics. Overall Chinese imports dropped by 8.5% in May from a year earlier, according customs data released Monday. It was the sharpest decrease since July 2016 and much steeper than the 3.8% forecast by analysts, Reuters reported. Exports rose 1.1%, bucking expectations of a decline, but shipments to the U.S. fell for a second month. Meanwhile, South Africa has lost its status as the continent’s biggest gold producer to Ghana because output is shrinking amid high costs, regular strikes and the challenges of extraction from the world’s deepest mines, according to Bloomberg. And Barrick Gold Corp. and Newmont Goldcorp Corp. are trying to lure back general investors who abandoned the gold sector years ago. Disclaimer: This editorial has been prepared by 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.