Do gold & silver finally begin their breakout moves this week?
(by Half Dollar) It’s Jackson Hole week.
The Jackson Hole Economic Symposium is hosted by the Kansas City Fed, and among other things, it’s one of those events in which markets participants are looking for some sort of major announcement coming from the Fed.
This year, many Fed analysts are thinking the major announcement could be an announcement of the so-called “taper”, where the Fed reduces its monthly purchases of US government debt, but over the last week or so, there has been a lot of chatter in the mainstream about the economy slowing down, so surely, if there are signs of “weakening”, the Fed has a convenient excuse to continue its monetary policy with the pedal to the metal.
The Jackson Hole event is generally a “who’s who” of market and economic policies, and the event has participation from all over the globe, but this year, at the last minute, the symposium has been turned into an online, virtual event.
Yes, in late August of 2021, all sorts of cancellations and disruptions continue to rule the day.
Regardless, Fed Chair Powell will be giving a speech on Friday, August 27, 2021, and when Powell talks, there could be some market movement.
There’s been some movement in gold overnight and on Monday morning:
Gold begins the week doing battle at $1800.
Silver is trying to distance itself from a 22-handle:
A lot of people are wondering if the bottom is in?
The paper gold-to-silver ratio is back above 76:
There is a lot of trading between now and Powell’s speech, however.
Palladium has had a rough time of it lately:
Palladium lost over 12% just last week.
Platinum has been banging around $950 and $1050:
Is platinum bottom bouncing?
Copper briefly lost a 4-handle last week:
This is part of the “disinflation” everybody keep shouting about.
Crude oil has lost $65:
The question is, will a “fear premium” kick in to the price of crude with all of the latest news coming out of Afghanistan, Syria, Iraq and Iran?
Market participants are not a calm and collected as they have been:
Just another blip, or the start of something more meaningful?
So far, it’s barely been anything other than a tiny blip:
We didn’t even lose the 50-day moving average.
Yield on the 10-Year Note is moving sideways:
Of course, the brute force pressure remains to the downside.
The US Dollar Index is still above 93:
How much farther does the dollar have to rise, or is the move exhausted?
Thanks for reading.
Paul “Half Dollar” Eberhart