The recent price movements in the precious complex, particularly palladium, remind me of a life

Good Morning,

 

The recent price movements in the precious complex, particularly palladium, remind me of a life lesson my father once told me. He said to me, “Sometimes you eat the bear and sometimes the bear eats you”. Unfortunately, it appears the bear is still pretty hungry. Gold continues to grind lower ahead of the FOMC meeting that will take place over the next day and a half. Worries that the Fed will begin to taper stimulus measures seem to be subsiding for the moment causing market participants to favor the equities arena as they try to squeeze every last drop before the well eventually runs dry and the Fed pulls the plug on the printing presses. The yellow metal closed the previous session at $1382 and now sits .75% lower at $1372.Platinum and palladium continue to test lows as worries of an AMCU strike at Lonmin are abating, for now. Platinum is down nearly another .5% from yesterday’s close and currently trades $1427. Palladium is nearing another 2% move lower and currently trades $706 after closing Monday’s session at $717. Also not helping the cause for the industrials are reports that European car sales hit their lowest level in two decades. On the domestic front, U.S. housing starts were up 6.8% in May and Consumer prices rose just .1%. The 12-month inflation measure is still below where the Fed-Heads would like it to be which should factor into their discussions today and tomorrow. Adding to the drama of the FOMC talks are indications that Ben Bernanke may be singing his Swan Song in the coming months…stay tuned. Have a great day!