A wise investor or trader will tune out war/politics and inflation noise and focus on what matters: gold’s relationship to cyclical and more inflation-sensitive markets.
Gold rose 3.7% this past week and is now just shy of new highs over $3,500, closing at $3,431. New highs could come early this week as the global and domestic situations worsen.
June 18, the FOMC delivers its next Policy Statement. Expectations call for the voting to maintain the target range for its Funds Rate at 4.25%-to-4.50% regardless of the faltering Econ Baro.
Gold faces considerable downside risk with the US dollar extremely oversold and likely to bounce. Silver’s breakout won’t survive a larger gold pullback or correction.
Multiple metrics indicate that commodity prices are currently exceptionally undervalued, aligning platinum’s low prices with this broader trend (as well as silver’s).
Trump is badgering Powell relentlessly about interest rates. Aside from being great theater, the odds are near zero that the Fed will cut in June, and very small that they’ll cut in July.
