Gold Treading Water To Start Week

The Market Gage - Dillon Gage's Precious Metals Newsletter

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.

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