Audio Commentary w/Am. Ag. Network’s Susan Littlefield Below
Additional PM Comments
No real news update from the Oval Office w/Pres. Trump & PM Carney’s meeting this afternoon. But I will expand a bit on the new record-high gold prices: specifically when I talked to Susan in the audio about “What are we missing?”, in regards to the gold continuously making fresh all-time record highs and the potential implications. More specifically, what could be the leading indicator signals that this gold rally may be giving us?
First, I think it’s important to note that the Gold is moving without any of the other commodities; yes, silver is starting to see some sympathetic buying, but if we look at commodities like cotton and crude, we are seeing them either making 6-week lows (cotton) or we’re seeing them remain in a sideways to lower mindset (crude & wheat). This suggests to me that the financial market/financial world isn’t ready to set-in to a commodity-wide inflationary buying spree…at least not yet. And the strength in the US Dollar is another feature; here we have the USD finding quite a bit of support and shooting back toward its key resistance of 98.50: something I spoke about on RFD-TV this morning. For the USD, I see this more as a safe-haven buy due to the US Govt. Shut-down versus a rejection of inflationary pressures and global debt concerns. This leads me to the last key feature of the current rally in gold; it is being matched with a very strong rally in emerging markets. If this suggests anything, it suggests that a rally in BOTH gold and EM’s is the possible footprint of a rejection of US assets…i.e. not wanting US Bonds any longer because of the fear that interest rates are only going to go higher in the next 1-3 years. That’s my line of thinking right now; a supportive-confirmation of this mindset would now be to see the US Dollar resume its downtrend and break-through its old support from the monthly low just made. If this were to occur, I’d be very ready to “sell Wall Street’. If you like what you’re reading, sign-up for a free trial on the Free Trial Tab. Thank you..
