Blog posts of '2024' 'January'

While the gold and silver markets are showing initial strength this morning, outside market action leaves the bear camp with a prevailing edge.

In fact, despite initial weakness in the dollar, disastrous retail sales readings from the UK should leave the dollar in favor and physical commodities like gold off balance.

Furthermore, US treasury yields have clawed higher this week with yields overnight reaching the highest level since December 13th...[MORE]

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While February gold did not post a lower low trade overnight, fundamental developments favor more declines and a trade below $2000.

In addition to hawkish ECB dialogue predicting no rate cuts until summer, expectations for a US cut have been pushed further into the future with US data continuing to signal an economy holding together which in turn has been accompanied by a consistent reduction in the probability of a first quarter US rate cut.

However, the bull camp should get some credit for prices tracking in positive territory this morning especially with the Chinese Premier discounting the prospects of a stimulus package from the government...[MORE]

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Fortunately for the bull camp in gold and silver the upside breakout extension in the dollar overnight has been offset by a minimal decline in US treasury yields.

However, the charts in the dollar project higher action ahead, and the US economic reports slate today is very active potentially rekindling rate cut timing debate.

In the end, the dollar is underpinned, and gold is pressured from Fed Gov. Waller's comments yesterday cautioning the Fed against rushing to cut rates before establishing inflation has been slayed...[MORE]

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