With the gold market this morning sitting near the highs of yesterday’s upside explosion, bullishness remains in place. The dollar has not posted a lower low today, but the index sits just above the downside breakout point, leaving negative charts and widely anticipated pressure expected from the Fed decision this afternoon. While it might be premature, a paradigm shift may have taken place in the precious metal markets.
MARKET IDEAS: While the softening in US consumer price inflation might not justify a sustained drive higher in gold and silver, the report yesterday does suggest a paradigm shift in the financial markets and most specifically the dollar. The CPI report appears to have sparked a resumption of the downtrend pattern in the Dollar Index, and that should provide tailwinds instead of headwinds for gold and silver.
MARKET IDEAS: Given this week's events in China, the downtick in US inflation, and signs of a redeveloping downtrend in the dollar, we suggest that the $3.80 level is becoming firmer support. However, there are reports that a Chinese web application documenting daily infections was taken down and that the government is apparently no longer counting asymptomatic cases, which seems to show they are willing to accept a surge in infections.
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Source: KitcoNewsNOW - 🏆 13. / 78 Read more »
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »