The Viper Report’s Tom Aspray reviews the price reversal after the jobs report. Similar price action at the July highs marked a change in trend, what about now?
Nothing has changed over the past week. The Fed remains dovish, and in spite of its transitory speak about inflation, prices continue to soar. Biden calls for even more stimulus, but it’s doubtful all of it will make it through the Senate. Meanwhile, the parameters for Gold remain the same. Resistance is at 1800 and support is at 1740-50.
Yields are rising again…
… but so are inflation expectations:
Real yields are flat to lower recently, supporting Gold’s move off its lows. While Powell says rising inflation is temporary, all evidence is to the contrary. While yields cannot be allowed to get out of hand and risk the collapse of everything, inflation will continue to rise as the printing presses remain plugged in and supply chains break down. This is the foundation for the coming surge in precious metals. I don’t see the 30-Year T-Bond going beyond the 2.75-3.00% resistance zone.
About DTN
DTN delivers accurate, objective, real-time, and actionable insights to increase our 2 million customers’ confidence and support their business decisions. In a data-rich world, our actionable insights in weather and financial analytics make sense of the information, drive change in processes and help businesses prosper. They empower our agriculture, energy and transportation customers – those who work endlessly to feed, fuel and protect our world. We believe that when our customers are supported with the most reliable and innovative information to the Nth Degree, they prosper and we all win. DTN is based in Minneapolis with offices globally.