Tuesday, October 27, 2015
The truth will set you free is an axiom that speaks volumes. But this morning the truth that seems to be coming out has done little to set gold free of its negative shackles. Today’s Durable Goods Report was significantly lower than expected. Consumer Confidence was also lower and it has been said that Goldman Sachs announced lower expectations on this week’s GDP report due on Thursday. The logic seems to be a global slowdown will mean lower commodity prices instead of weaker US dollar. The market seems to be wishing for lower gold prices though the US dollar is losing some ground. It seems we are in a perplexing situation as the major funds are not convinced they should back the yellow metal yet. All indications are that tomorrow’s Fed Rate decision will be a non-event as they will most likely hold off due to the recent economic reports. Precious metals in general should benefit overall to the upside. However truth in our society does not always come out as perception promulgated by media may have a greater influence in the short term.
Wednesday, October 14, 2015
A beautiful spring like day seems to be bringing in a spring like atmosphere in the precious metals market. But this is not so for the global and US economy. Overnight news on China reported that passenger vehicle sales are the lowest they have been since 2012 for the year. This was followed up in the USA this morning by a deflationary Producer Price Index at -5 % and a weaker than expected Retail Sales of -.3%. Additionally the Business Inventories report shows signs of a stagnant economy at best. In this kind of environment the Fed Interest Rate Hike seems to lose its position as people are beginning to wonder if there is real growth in the US at all. Thought the demand for dollars and equities stays firm interest in hard assets are driving some funds into gold and platinum. The steam however seems to be running out this morning at current levels and it will take some Miracle-Gro to get it going any higher today.