The price of gold seen in positive territory as we start the trading day. For the past two days, there were 2 factors that were directly related to a selloff in the yellow metal. One was a stronger dollar and the other was profit taking in the gold ETF funds, as we witnessed large outflows of gold holdings.
Nonetheless, over the last few weeks, the gold market has built a strong foundation above the $1,200 dollar level and now some day traders believe any pullback is seen as a buying opportunity.
Silver trying to build a base above the $16.00 level, hoping also that any pullback in this price would be viewed also as a buying opportunity like her big sister gold seems to be enjoying.
Across the pond, physical demand for gold in India and China remains weak. In India, the six week jewelers strike is over. Dealers protesting an excise duty on gold imports curtailed demand, but now gold dealers are back in the market again.
Data to be released later today includes US Empire State manufacturing, industrial production, capacity utilization, University of Michigan consumer sentiment and inflation expectations. All or some of this data can impact the price of gold later today.
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.