The price of Gold starts the week treading water above the $1,200 dollar level. Not helping the holders of long positions in Gold were the 300,000 ounces redeemed overnight in the Gold ETF arena.
Keeping Gold afloat is a slightly weaker dollar and softer 10-Year Treasury Yields around the globe. The U.S. is the only one that has their Ten-Year Yield Bonds in positive territory this morning.
Commitment of traders report from last week showed funds reduced their long positions by 17,000 contracts and added 13,000 new shorts to their positions.
Levels of support in Gold not seen until we test the $1,182 level in the spot price. Silver support not till $16.68.
The Wall Street Traders I spoke with this morning are still content with their short positions. If you remember last week they indicated that going short at the $1,210.50 level which was a 50 percent retracement level from the highs.
All eyes on the Fed Wednesday as the probability of a rate hike still standing at 88.6 percent according to the CME Watch tool indicators. One must believe a 25 basis rate hike is a sure thing at Wednesdays meeting. What the street is waiting for is the press conference after the Fed announcement with Chairwomen Janet Yellen to hear her thoughts and comments on the economy and the possibility of future rate increases.
I expect a couple of quiet trading sessions till then.
Have a wonderful Monday.
Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.