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Precious metals have consolidated and are trying to probe higher since the recent lows that were made on Sunday night / Monday morning, as the USD has backed off which has likely caused some of the shorts to begin covering while physical demand, especially in silver, remains very strong.
Precious metals have consolidated and are trying to probe higher since the recent lows that were made on Sunday night / Monday morning, as the USD has backed off which has likely caused some of the shorts to begin covering while physical demand, especially in silver, remains very strong. The headline of the week so far is the global sell-off in equities on the back of the International Monetary Fund lowering their forecast for global economic growth for this year and 2015. This comes on the heels of continued weak economic data from Germany as the IMF stated that the U.S., Europe and Japan could face years of sluggish economic growth.
In addition to the weakening USD, the U.S. bond market has rallied sharply as the 10-year yield, which was testing 2.60 percent recently, is now at 2.35 percent which should further support precious metal prices. Today brings us the minutes from the most recent FOMC meeting. All markets will be looking closely for any hint of the upcoming “tightening” as rates are still poised to rise in 2015. Dovish comments today could bring about a big short covering while hawkish comments could see us testing the recent lows equally quickly.
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