Walter Pehowich is off today. The insights were compiled by a senior Dillon Gage analyst.
Gold hits the wall just shy of $1,300 this morning.
In the precious metals market, both gold and silver saw some modest gains yesterday, which at this point should be viewed as a victory considering we began the week with gold seeing a five-month low in prices. However, after coming within a two dollar striking distance of $1,300 several hours ago, the flash U.S. manufacturing Purchasing Managers Index for May was released, taking the wind out of Gold’s sails. The PMI rose to 56.6 from April’s 56.5, hitting a 44-month high.
At the time of this writing, the June Comex is off $3 at 1,289, with silver at 16.31 in the June Comex, off .219.
The precious metals market is definitely stuck in a repeating weather pattern, with high equity investor interest, a resurgent U.S. dollar, and Treasury rates all tamping down prospects for a short-term bullish outlook.
The geopolitical landscape continues to confound us all, with the daily cat and mouse diplomacy on the Korean Peninsula. News broke that the White House Communications Agency had a special military coin minted for the pending June 12th summit in Singapore, featuring both President Trump and Supreme Leader Kim Jong Un. What happens if the meeting is called off? Talk about collector interest–there were only 250 struck!
The U.S. is still set to re-sanction Iran soon, which might further disrupt the oil market, driving up prices and likely providing a lift for precious metals overall. One door closes, another opens. Same goes for windows.
Stay safe and have a wonderful Wednesday.
Disclaimer: This editorial has been prepared by a senior Dillon Gage Metals analyst 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.