A mixed bag of indicators to start the day as we see a slightly weaker dollar and stronger Ten Year Treasury yields. Just a week ago we were seeing Ten Year U S Treasury yields at 2.10 percent, now today showing 2.17 percent this helping to keep a cap on any gold rally.
The price of gold recently broke thru a key level of support at the $1,248 level and now seems to be heading lower towards its next level of support at the $1,232 area.
Fed speakers are at it again earlier this week as New York Fed President William Dudley’s comments seem to be giving the Dollar a boost, hurting the price of gold. Even Chicago Fed President Charles Evens who is a known dove shared some hawkish comments.
Some Wall Street Gold traders are playing the market from the short side as bids in the marketplace look weak. When I mentioned silver to my trading friends the response I received for the most part was, boring, so why bother trading a directionless market.
The recent excitement in the Palladium market seems to be subsiding as we start to see the metal finding its way into the marketplace. Converting Palladium sponge to bars are heating up and finding its way to Zurich reducing the 3-month palladium lease rate from 18 percent just a week ago to 7.5 percent today and bringing in the Palladium EFP to minus 9 minus 1.
Washington Insights
President Trump’s displeasure with Kim Jung-Un’s behavior continues, as the President claims China’s
efforts to curb his continued defiance has failed. The treatment of Otto Warmbier while in a North Korea prison has seemed to agitate the president and folks on the Hill with some indicating that something has to be done sooner rather than later to stop this madman.
Yesterday’s victory for the Republicans and Karen Handel in Georgia’s special election replacing Tom
Price seems to send a message to the country that the President’s popularity is not dead in the water as some Democrats claim.
Now that the most expensive special election is over, Washington will try once again to work out a Health Care Bill. The Democrats claim these negotiations should not be held behind closed doors and should be shared with them in a transparent manner. They vow that whatever the Republicans submit will be dead on arrival, threatening that there will be no agreement before the August recess. I expect they will stand their ground which in turn will delay the tax reform and infrastructure bill to early next year. Something the equity markets don’t want to hear.
I remember when I was a kid in elementary school we started each day reciting the Pledge of Allegiance. For those who don’t remember it here it is:
“I pledge allegiance to the Flag of the United States of America, and to the Republic for which it stands, one Nation, Under God, indivisible, with liberty and justice for all.”
Maybe it’s time both parties on the Hill took a pledge to stop this madness and work together with a common cause for the great people of our nation. But when I put on my hat as an Las Vegas odds maker, I place the odds of this happening at close to zero. I guess I’ll just have to wave the white towel and give up. What a shame!
Have a wonderful Wednesday.
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