Bloomberg/Kevin Crowley/7-13-2016
“Economists predict the Bank of England will cut interest rates on Thursday to limit the economic fallout of the country’s vote to leave the European Union, while Japanese Prime Minister Shinzo Abe has ordered more fiscal stimulus. Low interest rates are typically good for gold as they reduce the opportunity cost of owning the precious metal.”
MK note: In addition, FOMC voting member and president of the Cleveland Fed, Loretta Mester, said yesterday that helicopter money “would be sort of next step if we ever found ourselves in a situation where we wanted to be more accomodative.” Left leaning economists globally like the idea of handing out free money to the populace as a means to stimulating an otherwise moribund economy. What they do not take into account is that a good many would simply put that money away for a rainy day or pay off debt rather than log into their Amazon account and spend it. The times they are a-changin’. . . . . . .
MK note 2: At any rate, it looks like today’s turn to the upside in the precious metals began overnight at the Shanghai fixes. In the live chart to the right note the rally at roughly 8pm MT and another spurt higher at the midnight hour. The Shanghai fixes come at 8:15pm and 12:15am Denver time. Also keep in mind that China has become a strong player in the silver market as noted in the last issue of our newsletter.
(Our gold trading hours page is steadily gaining in popularity because it helps investors understand the daily trading timeline for gold and silver globally. The sun never sets on the gold market. In my view, it is helpful to know where market turns occur. For example, someone [or perhaps a group of someones] in China, it appears, saw the price correction in the U.S. market yesterday as a buying opportunity. That reversal held in London and is pushing the trend line higher in early U.S. trading.)
Share
