Constructive start to the week for Metals
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Featuring views and opinions written by market professionals, not staff journalists.
Gold closed last week at almost $1,925 exactly; bulls want to push the metal past $1,935, which is acting as resistance. A close over that mark would make a rally to $1,965 probable.
Silver got up to $24.85 overnight before turning down but looks to be holding support along with gold, a positive sign. Platinum continues to trade under $1,000, but has found solid support at $985.
US S&P 500 equity futures are pointing to a positive open this morning. However, equities are in the short-term grind that we had suggested may occur before a run to their all-time highs. Bearish sentiment is seemingly being fueled by financial news headlines regarding multiple yield curve inversions in the US treasury market; Although yield curve inversion is a reliable predictor of recession, there is a lag before the effect.
With FOMC meeting minutes scheduled for release Wednesday afternoon, market participants may start looking for signs of dovishness, or anything that may suggest a reversal in the Fed’s hawkish stance. Will the central bank begin to change its tone, factoring in the recent moves in the US treasury market? Note that notoriously hawkish Fed president James Bullard is scheduled to speak on Thursday, the day after FOMC minutes are released.