With a three-day high and a developing pattern of higher highs and higher lows, the technical picture for gold has improved.
However, with a stronger Dollar to start, the positive start in gold and silver might indicate the metals are embracing flight to quality uncertainty from China which saw a major property company forced by a Hong Kong Court to liquidate its assets.
The markets continue to see chatter regarding rate cuts from the ECB and stories suggesting the Fed is already acting which signal a pivot...[MORE]
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While the CME Fed watch tool pegs the probability of rate cuts in the January, March, and May Fed meetings at 2.6%, 48.1%, and 50.1% respectively we feel there is a slightly higher whisper expectation for a rate cut in the market.
However, with the Feds favored inflation measure (PCE) scheduled for release today and expectations calling for a +0.2%, the prospect of a near-term cut in US rates should remain very small.
In fact, to see a rate cut by the June meeting will likely require some contractionary monthly PCE readings...[MORE]
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With outside market forces of lower US rates and a weaker US dollar, both gold and silver started the Wednesday trade with a relatively strong bid.
In fact, as of this writing the dollar sat just above a downside breakout and a six-day low which could result in gold and silver adding to the early noted gains.
For a change, the silver market could take a leadership role with Fresnillo projecting 2024 silver production to be 7 million ounces below 2023. Unfortunately for the bull camp, Fresnillo also posted a 13% year-over-year increase in silver production for 2023...[MORE]
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