In addition to a justified short-covering bounce from the oversold condition into yesterday's lows, gold and silver are drafting lift from better-than-expected Chinese economic news overnight.
Apparently, a portion of the gold and silver trade saw this week's US CPI and PPI readings as inflationary, and in turn traders in those markets raised their expectations for a US Fed hike. It should be noted that the inflationary signs in this week's key monthly US inflation reports were interpreted as dovish because excluding food and energy readings supposedly countervailed the headline gains.
However, we think the odds favor a pause although not as high as the CME Fed watch tool suggested this morning at 97%...[MORE]
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