Friday, May 5, 2017
Today’s impressive sounding positive employment numbers were not really as positive as the first glance reflected
Today’s impressive sounding positive employment numbers were not really as positive as the first glance reflected. Labor Force participation was lowered which automatically improves the Unemployment rate. The precious metal’s market knee jerk reaction was down but quickly recovered but as yet has not recovered all the loss. Like a scratched record I repeat the precious metals remain under pressure. The news to watch is this Sunday’s French elections. All the media is promoting a Macron win making traders comfortable with their current precious metals positions. An upset would change everything.
Wednesday, April 26, 2017
President Trump’s tax plan is a key focus today as pundits babble on about what is in it without actually having all the facts. Two key points I have read is a significant cut to corporate/business operating taxes and a cut on US Foreign earnings repatriation which is supposed to bring monies back on shore and drive more hiring and spending domestically by corporations. It will be interesting to see how it effects the debt ceiling event on Friday of this week. The French elections remain front and center and will be so until it passes May 7. As long as the market is buying a Macron expected win pressure will remain on the gold. The precious metals complex is no longer looking very bullish if gold were to trade down to the strong support level at 1245 or break lower that would signal a complete change of direction. Palladium remains the only bull in town but for now while silver is under attack.
Friday, February 3, 2017
The Federal Reserve made no changes yesterday with no indication for the future. Our focus though is no longer on the Fed now that the political landscape is changing. President Trump has intimated his concern of an overvalued dollar and is expected to take actions to address the situation. With the Fed out of the way and expectations of moves to make the US dollar weaker gold has gained old ground and appears that it will continue to try higher. A break above 1235 in the coming days could trigger a rally as high as 1275. In other news Iran test-fired a new ballistic missile which drew ire from the current US administration. This tension only adds support for safe-haven buying. The rest of the precious metals group are benefitting from the gold move.
Wednesday, January 4, 2017
Happy New Year it is for the long palladium traders. It’s up another $30 today and seems unstoppable.
Happy New Year it is for the long palladium traders. It’s up another $30 today and seems unstoppable. But truth be told the short selling that brought down the price was much heavier in volume than the light buying that is buoying the price now. This may be a sign that longs established at current levels may be at risk of failure. Gold is nowhere in comparison to palladium but it is still in bullish territory and looks to have more upside potential. The weakness of the European economy and the much favored US dollar will continue to hold gold to the upside. Today’s Federal Open Market Committee Minutes are probably the least important we have seen in the last six months. With 3 Fed presidents leaving and being replaced by what are considered more dovish persons, the questions will be, how often will they raise rates and what they may intimate about the possible Trump Presidency future influence on the economy. No surprise are expected so current upward trends are likely to prevail in the precious metals group.