A weaker dollar index of late under 100 keeping the price gold a float.
The Ten-Year Treasury yield at 2.20 percent in positive territory this morning, up overnight from a low yield of 2.1943 keeping some pressure on the gold price this morning.
I’m told large fund selling in the far east overnight also putting pressure on the price of gold. This move has kept the Wall Street Gold traders guarding their long positions. Both my technical friends and the Wall Street Gold traders I spoke with this morning are calling the $1,278-$1,279 level in the June contract a level of support. I expect this is where the smart traders are entering their stop orders after going long at the $ 1260 area a week ago.
For the readers who follow the FOMC Fed Rate Watch Tool here is an update. The next Fed meeting in May is only showing a 4.3 percent chance of a 25 basis rate hike . June is showing a 42.3 percent chance and at no point at the remaining meetings does the odds exceed 45.8 percent. Only a Chrystal ball prediction, if there is no data to support another increase.
Now to news from across the pond:
We will be following the French election closely this weekend as the outcome can have a significant
impact on the price of gold in the coming months.
We all know Ms. Len Pen’s stance of taking France out of the EU. She has stated that within six months into her term she will put together a referendum for France’s exit from the European Community, and if it fails, she indicated she will step down.
Two suspects were arrested on Tuesday on suspicion of planning an imminent and violent terrorist attack ahead of the first round of France’s election this weekend. Not surprisingly, Ms. Le Pen has increased her anti-immigration and Anti-Islamic rhetoric, trying to excite her constituents before the election.
The arrest will benefit Ms. Len Pen’s campaign. Over the weekend she continued with her promise to give the French their country back by suspending all legal immigration and protect their way of life. She stated “Give us France back, damn it” as her supporters yelled in a loud voice “This is our home.” Ms. Le Pen also said, “this election is about losing the way of life the French people have enjoyed for centuries…In France, we drink wine whenever we want. In France we do not force women to wear the veil because they are impure. In France, we get to decide who deserves to become French”.
No one expects any one of the five candidates to win a majority, so a runoff election is scheduled next month.
Have a wonderful Wednesday.
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