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The Hightower Report

The Hightower Report

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Less hawkish Fed undermines $ & lowers US yields bullish to metals

(Kitco commentary) - The gold market rally is impressive this morning, seeing it happen without definitive weakness in the dollar should embolden the bull camp.

Trend is down with a bearish conundrum of rising rates/recession

(Kitco commentary) - With the dollar index posting a six-day high overnight, traders should expect new contract highs in the coming sessions, even though a lack of critical US economic data today might limit activity in the currency markets.

A lack of upside momentum as the markets fear rising rates

(Kitco commentary) - While the gold market did not make a fresh high for the move overnight, prices have managed to consolidate above $1,750 and sit just under this week's highs. Similarly, the silver market has extended a sideways consolidation around $19.00 and forged a quasi-double low starting at $18.65.

The bias is down but outside impacts are neutral early on

(Kitco commentary) - Despite a $128 rally in July and August, the gold market so far has not suffered a severely damaging reversal from this week's high.

Fear of recession, higher dollar, and rising rates all bearish

(Kitco commentary) - Global equity markets were mostly lower last night, with the exceptions being the All Ordinaries and the TOPIX Index, which traded fractionally higher.

The odds are higher for a hot rather than muted US PPI

(Kitco commentary) - Global equity markets were lower overnight, with some exceptions seen around the Pacific rim.

The path/trend remains down until there is a paradigm shift

(Kitco commentary) - Overnight, global equities move higher with the German market posting the largest gain of 1.7%. Critical economic news included a softer than expected Australian AIG Performance of Services Index for June, lower foreign investment in Japanese bonds and stocks

50-point hike priced, but hawkish threats for June are not

(Kitco commentary) - Today will be a test of the gold and silver bullsâ?? resolve with the US Fed likely to hike rates by 50 basis points, but a portion of the trade this morning is still fretting over the prospect of a larger hike.

Deflation, slowing and a strong $ weigh heavily on metals

(Kitco commentary) - In retrospect, the upside action in the precious metals complex this week has been extremely discouraging to the bull camp, as the Russian Foreign Minister's comments regarding the potential for a nuclear war should have ballooned prices.

Corrective Action to Extend off Positive "Real Rates"

(Kitco commentary) - Gold and silver prices are under pressure again this morning despite a significant downside reversal in the dollar.