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Gold Back in Bullish Mode

Gold Back in Bullish Mode
Category: Market Reports
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Posted: 05-12-2016 09:09:00 AM

What I find amazing are the almost daily increases in the gold ETFs, now sitting at a new 2016 high of 59,849,362 ounces.

Gold has a two-day recovery and remains in a “bullish mode” after all the bad news out of China on Monday had been absorbed.

Monday’s open interest in gold revealed that only 6000, as I call them nervous longs, exited the market on Monday’s selloff.

What I find amazing are the almost daily increases in the gold ETFs, now sitting at a new 2016 high of 59,849,362 ounces.

Dollar index is in negative territory at 93.93 at the time of this report, far from the lows of 91.91 when gold was trading over the $1,300 dollar level for a short period of time a couple of days ago.

A story that was shared with me this morning is that JPMorgan Private Bank’s Solita Marcelli said yesterday on CNBC’s “Futures Now” that they are recommending to JPMorgan clients that they position themselves for a “new and very long bull market in gold.”
After seeing three back-to-back years of losses, precious metals have rallied 20 percent in 2016. And that’s just the start according to Marcelli. She indicated “$1,400 is very much in the cards this year.”

As I indicated in previous comments that in a negative interest environment, as we see in some parts of the world, gold remains an attractive investment in the physical market as well as in the ETF arena.

Some commodity funds, as well as some Wall Street day traders, continue their long positions in gold, as they believe the dollar will continue to weaken and the FED will not have the data required to raise rates anytime soon.

Silver, platinum and palladium are also in recovery mode after Monday’s selloff.

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About The Author

Walter Pehowich Author Name: Walter Pehowich
This editorial has been prepared by 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.

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