Loading ...Stolen from another website. 🙂
“Political uncertainty is adding additional weight to the dollar. Turnover — and speculation about potential turnover — within the Trump administration and investigations of the President’s inner-circle have dimmed hopes that Mr. Trump’s economic agenda will be advanced anytime soon.
With progress on the fiscal side hamstrung, additional pressure falls on the Fed and monetary policy. At this point, one more rate hike this year (probably in December) remains about a 50/50 proposition. However, if inflation and growth data continue to come in weak, that probability is likely to recede in the weeks and months ahead.
Our first look at Q2 GDP comes this Friday. Median expectations are +2.5%, but we’ve seen projections erode steadily throughout the quarter. A miss on Friday would pretty much erase any lingering doubts about a September pause and raise considerable doubts about December.
Such a miss would apply additional pressure on the dollar, which would in turn buoy gold and likely push it through the next tiers of resistance. Those levels are 1260.96 (retracement), 1267.67 (trendline), 1278.63 (retracement). ”
Comment: Things might be looking up for the Goldbugs. On the other hand, those General Market short plays I think we should start feathering into.