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Small Cover Rally On Jobs Number

Commentaries & Views

(Kitco News) - Metals bounce on the U.S. jobs number, but likely just a simple cover strategy after this week's weakness. The number will not prevent the Fed from moving in March. Until the actual Fed meeting, metals will be influenced by the dollar and flows to the equity space. Focus will once again return to an analysis of Trump's fiscal plans. Should this come together in a coherent fashion, and here the jury isn't only out, it hasn't arrived yet, and the Fed normalizes rates on a more aggressive path, metals may be in for a prolonged period of struggle. The key question will be: how does the bill get paid. If the promise is we'll do all of these great things and then the economy will generate 4% growth, and then tax receipts will rise to pay the cost, I would hold your core positions.

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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