Weaker Dollar Buoys Gold As We Eye France’s Election April 19, 2017 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. 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.