Blog posts of '2024' 'May'

With the gold and silver markets spiking higher following the Fed policy decision and press conference, the bulls showed some control as the trade was able to discount disappointment over another delay in cutting rates and instead embraced relief that the Fed was not in a mode to consider rate hikes!

However, given a significant jump in ISM Manufacturing prices-paid earlier this week that should be seen as a sign that inflation lives on in various sectors of the economy.

Unfortunately for the bull camp, we think that "dovish spin" will have a short shelf life, especially if today's US unit labor costs report matches expectations of a gain of 3.2% compared to last month's gain of 0.4%...[MORE]

Please subscribe to receive the full report via email by clicking here.

The deck is stacked against the bull camps in gold and silver today, with an upside breakout in the dollar, signs of higher treasury yields, fear of a hawkish Federal Reserve statement, and a lack of support from Chinese and European buyers overnight due to the May Day holiday.

However, the gold market should derive some underpin from World Gold Council projections of continued brisk global central bank purchases, and signs of positive gold demand from India and China.

It should also be noted that Indian gold demand increased by 8% during the January through March timeframe with gold jewelry demand in India increasing by 4% and amounting to a significant percentage of total world gold demand...[MORE]

Please subscribe to receive the full report via email by clicking here.