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Middle East Traders Return to Gold

Category: Market Reports
Author Name: Walter Pehowich
Posted: 05-16-2016 09:57:00 AM

Some wall street traders I spoke with this morning have said that they expect gold to test the $1,300 dollar level sometime later this week.

Metals start off the week in positive territory, with the dollar index in negative territory today. Stronger oil prices have some Middle East traders back in the gold market, indicating at these levels that gold looks like an attractive investment to them. My take is that the Middle East gold traders are feeling better now that oil has been climbing at a steady pace. This group has been away from the gold market for quite some time now, and as things improve in the oil market, I expect so see them trading actively again. Action from this part of the globe always puts a charge in the volatility of the gold market.

The ETF gold funds continue to increase day after day and now stand at a 2016 year high of 60,303,873 ounces.

Some wall street traders I spoke with this morning have said that they expect gold to test the $1,300 dollar level sometime later this week.

One gold trader I spoke with today said, “I always get concerned when everyone’s on the same page. In my opinion, we need to see gold settle above the $1,300 level for the yellow metal to have any chance of going higher. Physical demand is still lagging in this rally and until I see it pick up, I’ll have a wait and see approach to joining the club, especially at these levels.”

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About The Author

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.