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Janet Yellen, OPEC, Oil And Gold

(Kitco News) - Although Janet Yellen looked like a deer in the headlights when asked about potential conflict of interest with respect to Fed policy makers applying for positions with the Clinton administration, I would like to turn to an equally ludicrous set of clowns. OPEC announced that an agreement had been reached to cut production by approximately 800,000barrels/day in November. I’m sure all members will abide by the quota, especially our global friend Iran. Putin may even be on board until he is not. The U.S. frackers are licking their lips. But, let us give them the benefit of the doubt. OPEC curtails production, non-OPEC members play along and oil goes to $70 or higher. Global growth remains tepid and should decrease with higher energy costs. Inflation rises as all oil related products jump 50%. What does the Fed do? Raise rates? Hold and risk being behind the curve?  Keep buying the dips, the worst still lays ahead.

What you missed on this week's For Pete's Sake show:

By Peter Hug, Kitco Metals Global Trading Director; phug@kitco.com

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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