Watching EU Equities March 8, 2019 Just this past Monday, we reported that a number of countries in the EU were enjoying double digit gains in their Equity Markets since the start of the year. Yesterday, reality set in as ECB President Mario Draghi surprised everyone with dramatic cuts to his forecast for the EU which caused Government Bond yields to decline and put pressure on the euro. Three months ago, the ECB President said he expected the European economy to grow at a rate of 1.7 percent. Yesterday he reduced that figure to 1.1 percent, saying, “The persistence of uncertainties related to geopolitical factors, the threat of protectionism and vulnerabilities in emerging markets appear to be leaving marks on economic sentiment. The risks surrounding the Euro area growth outlook are still tilted to the downside.” To illustrate how significant the problems are in the EU, one just has to look at the yield on the German 10-year note, just 60 basis points – a low that hasn’t been seen since 2016. So, this morning is not a surprise that buying is once again finding its way back into the Gold market. The question remains, will this news be enough to convince the Wall Street Gold Trader to give up on their large short positions and cash in. If they do cash in on their positions, it should be revealed in the volumes of the time and sales data in the future markets. At that point we should be rallying and testing the $1,300-dollar level once again. At this juncture, at least for today, we need another news story of significance to prop up the price. Otherwise, for the time being, I expect we will just trade in a range between $1,282 and $1,297. Have a wonderful Friday. 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.