No Good End In SightMonday September 26, 2016 08:04
(Kitco News) - All asset classes are higher following the Fed’s inaction. The Fed and global central banks are begging politicians to assist through fiscal policy. Both U.S. candidates have expressed a determination to re-build America. The issue is that neither candidate has figured out a way to pay for it. It is highly unlikely that either candidate will garner bi-partisan support for a tax overhaul and neither will be able to cut entitlements, so if they re-build America, it will be on the back of a massive debt increase. Musk needs to be working on a car à la the Jetsons, which will not require the need to fix America’s potholes and the deficit will shrink and America will once again be great, albeit not so pretty. Current global central bank policies have no option but to end very badly. When the metals launch, it will be in large moves and not the step pattern we have witnessed since December 2012. The timing is always difficult and therefore we need to watch the technicals for a break-out. Gold needs to establish itself above the $1,376 level to begin a higher trajectory. Silver requires an initial break above the $20.45 level and then through $21.25, from where it should launch to the $24 area. It is frustrating awaiting the launch, but astronauts are positioned hours before the button is pushed. A core position should not be abandoned.
What you missed on this week's For Pete's Sake show:
By Peter Hug, Kitco Metals Global Trading Director; firstname.lastname@example.org