SD Outlook: This week is going to be one heck of a battle for gold & silver. Here’s why…
On the fundamental front this week, it’s going to be a tough one.
The week starts out seemingly normal on the calendar:
But what is not shown on the economic events is the President’s first State Of The Union Address which is on Tuesday, January 30th at 9:00 p.m. EST.
Recall that last week the president moved markets (especially the dollar and the metals) when he talked up the dollar and talked down Stevie’s “weak dollar” comments.
When the president addresses the nation of Tuesday night, that will be after-hours trading, and the market will be fairly thin, so if President Trump says some “dollar bullish” things, prepare for a paper bombing of the gold & silver markets.
It is hard to imagine that anything he says is “dollar bullish”, such as engaging in a trade war but wanting a strong dollar all the same, cause that dog don’t hunt, but that is the spin the MSM and especially the mainstream financial media will put on the speech if necessary.
For now, the cartel is riding the “everything is awesome” meme, and they will do so until they can make more money on the collapse. For now, however, the market’s are raking in plenty of fiat so they are content to keep it going as is.
A working theory of mine is that between the C.I.A. controlled media abroad, colluding central banks around the globe, and a dumbed-down population in general, all of this praise for such a good U.S. economy is not directed inward, but outward, so as to maintain the illusion of U.S. dominance in the markets.
While the dollar amount for total size of the economy and economic activity may show dominance for the time being, on the fundamental front, we’re no where near the top of the pack.
Speaking of fundamentals, there is no let-up on Wednesday with the January FOMC:
Better than 95% of the market, according to CME Group, is expecting the Fed to hold on interest rates.
Additionally, there is no press conference on Wednesday, so basically the Fed gets a free pass as this is Janet Yellen’s last official FOMC meeting as Fed Chair.
The next FOMC in March will be Powell’s first as Fed Chair, and that one is showing over a 75% chance of a rate hike, but for now, the Fed is able to convey whatever message they want. Between the State Of The Union Address and Janet surely getting praise in the form of a mainstream financial press “lifetime achievement” love fest, not many eyes will be directed towards the Fed’s inaction anyway. Eyes will be on the bond market, yes, but on the Fed, they’ll just get their free pass.
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