Opinion with Peter Hug
Small Cover Rally On Jobs Number
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Featuring views and opinions written by market professionals, not staff journalists.
(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.