For many the closing bell this week will be a welcome relief as extreme volatility in equities, bonds and energy products have all market participants wondering if we have seen the lows. Growing concerns over the German economy as their bond yields continue to fall and uncertainty over the path Greece may take as one of their political parties again pushes for leaving the Eurozone likely means the rollercoaster ride will continue for global equities next week.
Precious metals have had their moments this week, but rallies continue to be sold by speculators and perhaps producers while dips have been supported by physical demand. Speculation has been growing all week as to what the Fed will do to calm the nerves of investors who fear the U.S. economy could be poised to follow the path of Germany. The run towards U.S.Treasuries mid-week drove the 10-year yield down to the mid-1.80s and speaks very loudly to FOMC voting members that they should consider delaying the tightening course for rates in 2015. Another sell-off in U.S. equities next week will likely bring about talk of QE4 to get ahead of the curve, if economic data continues to be weak. Fed Chair Yellen is giving a speech in Boston this afternoon which will be closely listened to for any policy hints that will impact all markets next week and beyond. With gold continuing to be the leader for our market, support runs from $1,225.00 down to $1,215.00 while resistance can be expected as we approach $1,250.00.
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