Gold and silver are bullish after the FOMC minutes. Fed policy makers signaled they wanted more evidence that recent weakness in economic growth was transitory before removing monetary stimulus further. So basically if May nonfarm payrolls comes in below 150,000 then June’s interest rate hike will not be there. Any indication of interest rate hike postponement will be bullish for US dollar denominated asset class.
We also have the UK election in two weeks time. Technically the euro and cable are bullish against the US dollar. Cable will zoom if there are no surprises in the UK elections. (I expect Ms. May to come back to power even more strongly). Currency market trends will affect metals and not energies.
This post was published at GoldSeek on 25 May 2017.
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