U.S. Markets Closed; gold price under pressure
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Although the U.S. Markets are closed today for Presidents’ Day, markets still trade electronically until 1:00 EST. The trends have not changed, with equities making new highs once again; crude oil is exploding higher and bonds are getting crushed.
Gold continues to be under pressure and further separating from silver. Platinum remains in its own trading world, now trading over $1,300, a 7-year high. The trends are clear: gold in a downtrend and in danger of collapsing while silver and platinum remain in uptrends.
For now, the critical level to watch is $1,800 April gold; a close below there would bring $1,750 and $1,700 into play. If silver can get above $30, it could be off to the races and $1,400 April platinum is huge. We will stay with the trend and look for the gold/silver ratio to continue to fall; as of today, it is 65.
There is a much bigger story underneath the surface of the bond and gold markets. While the geniuses from the FED continue to tell us there is no inflation, bonds disagree. There is no question inflation is well above the FED’s antiquated way of tracking. The bonds are calling for inflation while gold is not. Which one will be right?
On Saturday we presented our Hedging Model. Below is the recording
We have also included a registration link for session 6 on Friday February 19th at 5:00 EST