Gold Slips On Senate Budget Vote

The Market Gage - Dillon Gage's Precious Metals Newsletter

Walter Pehowich is on vacation this week. Market Insights are prepared by senior Dillon Gage analyst.

The bulls continue to run wild, smashing records on Wall Street, as the Dow Jones Industrial Average hit another all-time high Thursday, topping out at 23,163.04. Confidence that corporate earnings will continue to beat expectations seems to be fueling this extended rally. Not bad considering that yesterday was the 30th anniversary of a day we’d all like to forget—Black Monday–when the stock market crashed over 500 points in one day…almost a 23% loss.

Typically, Dow Jones records dampen precious metals prices, but both gold and silver had lifted on the news of a weaker U.S. dollar earlier yesterday. THEN the dollar got a lift, hitching a ride on the passage of the Republican budget plan for the 2018 which will likely aid the Republican’s aim to pass a tax-cut package without the support of Democrats, this news dampened gold late yesterday into the night.

HOWEVER, one piece of news yesterday gave gold a hand. On Wednesday, we noted that gold took a hit when Bloomberg reported that John Taylor, a noted ratings hawk, had made a favorable impression on President Trump, who is interviewing the top five candidates to take over the Fed Chair reins. But yesterday, Reuter’s reported that dovish, current Fed Governor Jerome Powell is now Trump’s favored choice. That news added little stabilization to the yellow metal. Some people think a decision in this five-person horse race could be announced as early as next week. It’s all up to Trump as we head into the home stretch.

Currently, the yellow metal is trading at around $1,284 and silver is holding at $17.20.

North Korean Check-in

Our daily North Korean Peninsula update is unfortunately still necessary, as U.S. and South Koreans continue joint naval exercises. Yesterday’s quote from the North Korean state news agency KCNA: “The U.S. is running amok by introducing under our nose the targets we have set as primary ones. The U.S. should expect that it would face unimaginable strike at an unimaginable time.” Then, in getting personal with our President, “The rabid man in the White House…will first face the immense volley of nuclear fire if he hopes to settle (this) confrontation with nukes.”
Seems that they’re continually raising the bar on bluster. At least let’s hope that’s all it is. It is interesting to note that earlier this week, the U.S.

Stay safe and have a wonderful weekend…

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