Factors which can affect markets
Fundamentally there is no positive news for gold and silver. They are just moved by US interest rate trends and global bond yields. This correlation will be over by September and new correlations will be seen. A stronger US economy can result in initial losses for bullion but will start another 2003 type bull wave in gold. Excess will happen in a world where algorithmic trading/robots trade. The restarting of another super bull run is getting delayed by another few years.
Gold and silver are looking very bearish at the moment. Higher geopolitical risk has not lent support to bullion. Today’s US June payrolls need to be lower than 140,000 to start some short term rally in gold and silver. Crude oil’s failure to rise after a bad US inventory report can result in a ten percent fall in the short term. One needs to remain on the sidelines today.
The fall in crude oil prices reflects fundamentals. It is also the US style way of ensuring that the key crude oil producing nations exhaust their crude oil wells and US replaces OPEC as the price dictator of crude oil prices. Every war in the 21st century by America and NATO allies is for energy and minerals. This will continue.
This post was published at GoldSeek on 7 July 2017.
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