| | | | Markets took a bit of a breather today, but that’s not too surprising.
We’ve seen a fast rally since last Wednesday, with nearly everything moving higher, with a couple of notable exceptions — gold and silver.
Both metals have had impressive runs this year. Gold peaked at about a 35% gain for the year, before its pullback brought it down to roughly 25% on the year.
But silver is the real standout — it’s outperformed gold so far this year, peaking at 46% before the current pullback brought it to 29% on the year.
Gold’s drop to the 2600 level could actually put it in a position to find some solid footing, which might just set it up for its next move higher.
With the market’s generally positive reaction to Trump’s election, gold and silver’s appeal as 'safe havens' hasn’t been as strong.
Make no mistake, though, this is just a pause — the forces that have pushed these two precious metals higher aren’t going away.
Next up, with control of the House of Representatives decided, it looks like Trump has the dream scenario he needs to move forward with his policies. And as we know, markets crave certainty, so this final result is sure to be welcome news for traders.
The next big question on everyone’s mind?
Tomorrow’s CPI print, which comes out tomorrow at 8:30am Eastern.
When that report comes out, we could start seeing reactions to it in pre-market trading.
A cooler inflation number could reinforce the Fed’s recent quarter-point rate cut and even give them the green light to continue cutting.
But if inflation shows signs of heating up again, those rate cuts could be off the table.
Let’s see how it plays out. Stay tuned for what could be the next major signal for market direction!
— Geof Smith
P.S. No matter which way the markets move, I trade this one super-stable asset every single week to pull income from the market. | | | | |
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