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Precious Metals Dip as We Await FED Minutes

Precious Metals Dip as We Await FED Minutes
Category: Market Reports
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Posted: 04-06-2016 08:56:00 AM

So the picture I’m trying to paint is: Over the pond things are not as rosy as Ms. Lagarde and Ms. Merkel would have you believe.

As the market waits for the release this afternoon of the FED minutes from the last meeting we see all four metals in negative territory.

Also fueling the selloff are comments made yesterday by IMF Director Christine Lagarde. She said, “The world economy is continuing to RECOVER, but it’s still at a delicate stage. We have growth; we are not in a crisis. The not-so-good news is that the recovery remains too slow, too fragile, and risks to its durability are increasing.” She warned that because growth had been “too low for too long,” too many people were “simply not feeling it.”

Well, if I may be so bold to politely ask Ms. Lagarde to look out her window. On March 10th, the European Central Bank (ECB) cut rates, charging banks from 0.3 to 0.4 percent to hold cash overnight, putting Denmark, Sweden and Switzerland in negative territory. Migrants continue to come into Germany and other counties in droves putting enormous pressure on each counties economies. What will be the cost to support each family and how will these people find jobs?

German Chancellor Angela Merkel is in talks with Greek Prime Minster Alexis Tsipras about another Greek bailout. Seems to me this story has been around for a very long time. The German people are not happy with the way Merkel has been handling these negotiations. And the Greek people are still fighting any austerity measures presented to them.

So the picture I’m trying to paint is: Over the pond things are not as rosy as Ms. Lagarde and Ms. Merkel would have you believe.

So as Europe continues to struggle, the only thing stopping gold from a strong rally here is the interest rate games the Fed Governors are playing. I know I sound like a broken record (a saying we used many years ago when I was a kid) but my hope is that today, maybe we will get some news out of the last FED’s meeting that will show that a rate hike is not in the cards anytime soon. Wishful thinking on my part.

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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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