If The Economy Is So Good, Why The Underlying Fear?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold’s amazing recovery run from the recent lows is as much about underlying fear in the global economy as it is about the strength in the metals. The pattern looks ugly and more like short covering, but it makes you wonder why gold and silver continue to push higher if the economy is growing as reports indicate.
Treasury bonds are rallying, pushing interest rates lower into a growing economy. Rates should be rising if the growth is as good as indicated; of course, the numbers are garbage. Numbers never lie, but the people who report them do. Not to mention that the way in which they are gathered and reported is antiquated.
Something has got to give, but there are a ton of warning signs out there driving these fear assets higher. The equity markets are searching for a reason to sell off; the bond and metals rally is showing fear. Our expectations are one last rally to sell and one last sell-off in the metals to buy.