This morning, trade war concerns continue to keep the price of Gold in positive territory.
Equity investors are expecting the tariffs to have an impact on corporate earnings in the second quarter this year. This in turn should continue to support higher gold prices as investors look for safe haven products as equity prices decline.
For a while now Commodity Hedge Funds have been sitting with short positions and any sustained rally in the price of Gold should flush them out accelerating the rally.
With considerable uncertainty over trade and the potential for the Iran rhetoric to possibly change into a military conflict, the price of gold in the near term should test the $1,300 dollar level once again.
Have a wonderful Wednesday.
Disclaimer: This editorial has been prepared by Walter Pehowich of 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.