U.S. Gold Coins Gold American Eagle Coins Gold Buffalo Coins Commemorative Gold Coins First Spouse Gold Coins High Relief Gold Coins Pre-1933 Gold Coins
Precious metals and most commodities continue to be under pressure this morning as trading heads for the finish line in a week that has seen sharp losses in the precious metals complex on the back of USD strength and rising interest rates.
Precious metals and most commodities continue to be under pressure this morning as trading heads for the finish line in a week that has seen sharp losses in the precious metals complex on the back of USD strength and rising interest rates. I often write about the yield of the 10-year bond and its impact on price direction. Over the course of the last month or so, the yield has moved up from the low 2.30s to another sell off in bonds this morning which has the yield at 2.60 percent. While the yield is historically very low, the rising rate weighs heavily on our market as it supports the USD.
Next week brings us an FOMC meeting which should conclude with a statement on the committee’s view of the economy and thus a clearer picture on their course for interest rate hikes in 2015. Physical demand in our corner of the market has picked up sharply this week, as buyers who have been on the sidelines for many months have reemerged globally. U.S equities are under pressure this morning, which may inspire a few of the shorts in our market to cover positions and lock in a profit before the weekend.
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.