In this critical weekend update we take a look at several charts to see what could end up being a pivotal week ahead for the price of gold, silver, various commodities, and the US dollar index. The Federal Reserve raised interest rates by 75 points last week, but also suggested that it would slow the pace of future rate hikes to 50 points aim for a target of 5% or just above next year, which still would leave the Fed Fund rates below the latest annualized CPI inflation print of 8.2%. Inflation has yet to go down, despite the bear market in the stock market, and the bond bear market has shown no sign of ending.
The reduction in the pace of rate hikes may now put a bid on the commodity markets and precious metals. Eye the price of $21.00 an ounce on silver as a key indicator to watch, as when silver rallies through resistance it tends to be a sign that money will flow into mining stocks, even junior mining stocks. We took the silver breakdown at the end of June as a warning sign for both, and will take a silver breakout if it happens here as a green light for precious metals and mining stock bulls.
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