This morning, I received a highly informative blog from Walter Pehowich, which I wish to share.
“Where do I start? There is so much going on here in the States and around the globe that affects the price of gold in a positive way. I can hear the Wall Street Gold traders cheering the price of gold on with all the news to fuel their long positions, including:
- A weaker dollar and treasury yields
- Strong inflows into the Gold ETF s overnight
- Weaker equities (Is the Trump rally over?)
- Russia talking tough
- Syrian issues
- North Korea threat
- Healthcare (when?)
- Tax reform (if?)
- The Democrats digging in their heels promising to fight tooth and nail on any bill or action proposed by The Trump administration.
- If the President and congress fail to act we are looking at a potential U.S. government shut down without a budget on April 28. Hundreds of thousands furloughed employees, closed national parks, lack of government services and you better hurry up and get your tax return in because if the government shuts down so does your refund.
So, with all this going on do you still believe the economic data will justify a rate hike anytime soon?”
At 11am PDT today, Gold is trading at $1,273 per ounce, up $1 on average volume.
Silver reached a high this morning of $18.44 per ounce before seeing some light profit taking. Silver needs to stay above $18.10 for the balance of the week to regain its bullish sentiment with professional traders. At 11am PDT today, Silver is trading at $18.27 per ounce, unchanged from yesterday, with normal volume.