Continued pressure hitting the price of gold and silver this morning as the realization is setting in that more than one rate hike is a good possibility in the coming months. The price of gold still above the 100-day moving average at $1,218.60 spot and above, which is where Wall Street traders last bought in at $1,220.00. If we break thru these two levels, I expect the selling to accelerate and possibly test the $1,200 dollar level. My hope is that some good news enters the market place and we consolidate here
Always watching the CME Watch tool odds. Today’s odds on the board for a rate hike in March stand at 77.5 percent. I believe the street already has it as a done deal.
If I told you that there were outflows in the Gold ETF overnight you would have said that was expected but surprisingly the Gold ETF was up once again over 76,000 .ounces. Some group of investors just doesn’t want to give up on a gold even at these levels which is music to my ears.
So I’m watching very closely the levels I mentioned previously and hoping we stay afloat at these levels. Obviously there are folks out there that believe we will. Should be an interesting trading day.
Now some other news I’d like to share with you.
The French Presidential election an update:
The first round of the French Presidential election will be held on April 23rd. In the event that no one candidate wins the majority, ( and that’s what’s predicted ) a run off an election will be held on May 7th.
According to the polls leading the way is Ms. Marine Le Pen the leader of the National Front Party (and as I like call her ) the candidate of the” global Gold investor”.
Ms. Le Pen is facing four other candidates:
- Mr. Francois Fillon Republican Party
- Mr. Benoit Hamon Socialist Party
- Emmanuel Macron Onwards Party
- Jean-Luc Melenchon Left Party
Currently Ms. Le Pen is leading in the polls with over 26 percent of the vote, so a run off with the second leading vote getter is inevitable.
I’m sure you are asking yourself why do I call her “the candidate of the global Gold investor”?
Here’s why. Ms. Le Pen has over and over again said that if elected she will abandon the Euro in favor of a new Franc and within the first six months of her Presidency hold a referendum to leave the European Union. Obviously she will need the French Parliament’s approval.
Nonetheless, just the threat of this happening (as with the Brexit news) will have an impact on global markets. The European Community cannot afford to have another strong economic participant leave the EU. That will leave Germany holding the “bailout bag” for the likes of Italy, Greece, Portugal and Spain. All four countries are in bad shape, hanging around with both hands open waiting for more help from Germany and the IMF.
At this point no one knows how this will play out and, as a matter of fact, most people in the know say she has no shot going head to head with any of the other four candidates. But reportedly in some polls there are still many undecided voters and some who observers say might change their minds. That’s why many say don’t count her out as she continues to gain momentum.
To say the least, it would be very interesting to see how this plays out because in my opinion if she is elected the existence of the EU could be in question.
I’ll keep you posted.
Have a wonderful Friday.
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