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Crude Prices Could Impact Precious Metals – Again

Crude Prices Could Impact Precious Metals – Again
Category: Market Reports
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Posted: 03-13-2015 10:35:00 AM

Gold and silver are currently trading above $1,150.00 and $15.50 which may be a victory of sorts considering all the negative factors currently weighing on precious metals.

As precious metals head for the finish line this week, gold and silver are currently trading above $1,150.00 and $15.50 which may be a victory of sorts considering all the negative factors currently weighing on precious metals. The USD has taken a bit of a break from its “take no prisoners” rally which has helped as physical demand remains for the moment strong enough to offset speculative selling. The next headline we may have to deal with (and it could come today) is from crude oil which is once again under very heavy pressure. Crude is down 2 percent this morning and down 7 percent for the week as it currently sits on either side of $46.00. Extreme U.S. stock market volatility has returned which may support gold if U.S. equities are pushed lower and capital rotates back to our market.

Just when U.S. economic data, as witnessed by the recent jobs report, would set the stage for a rate hike by the FOMC, we have very disappointing data yesterday and today which clouds what the FOMC may be able to do in the coming months. Yesterday, we received a third straight very weak reading on retail sales. While this may be impacted by the bad weather, I do not see how the FOMC can raise rates while consumers are cutting back on their spending. This morning gave us further signs of an economy that is not ready for a hike in interest rates as the Produce Price Index has fallen for the fourth straight month and after a run of positive numbers the Consumer Confidence figure has unexpectedly fallen. Next week should certainly be interesting as the FOMC meets for 2 days with a press conference scheduled for Wednesday afternoon which will no doubt move all markets.

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About The Author

Roy Friedman

This editorial has been prepared by Roy Friedman 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. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not prove to be true, 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 the foregoing.

This editorial is republished by MCM with permission from Dillon Gage Metals. It is not intended, nor should it be taken, as investment advice. No warranty as to the accuracy or validity of comments made within this editorial is expressed or implied by MCM or its staff. 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.

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