The good news is that delivery on 2021 US Gold and Silver Eagles is getting better .
It is handy if you want to lock in the price “now” and insist on new product – but is not for everyone.
Reuters claims gold is listless because investors are waiting on inflation data this week and perhaps a clearer picture as to what the Fed intends to do with interest rates.
Still, the fear of both rising interest rates and Treasury yields may cap significant gains in the metals until the inflation picture comes into focus.
Meaning when will they begin to turn the financial spigot off? “Keep in mind, that the Federal Reserve chairman indicated that they would begin to discuss tapering after “several” robust gains in non-farm payroll readings.
Gold still holds a sold nine-week uptrend but needs to develop fresh buzz to push above $1900.00.
Reuters notes – look for a focus on US inflation data, the ECB policy meet on Thursday and SPDR Gold Trust ETF holding falling by 0.6%.
The Dollar Index holding above 90.00 contributes to this jitteriness – although the index is flattening out.
I think no one wants to really argue with gold’s positive technical picture but at the same time, these higher levels present a solid deck of overhead resistance.
There could be some buzz created over Thursday’s European Bank meeting as everyone will be listening for “inflation talk” and anticipating monetary policy adjustment – if any.
I think traders respect this market but without a significant change in the bullish or bearish scenario will look for tight trading ranges.
I am not a big fan of this dark scenario if you consider the economics and growth of Wall Street and e-commerce during the pandemic.
On the other hand – if you believe massive monetary expansion has created “systemic” or rising inflation which will not go away and come to plague our financial system buying the metals makes sense.
This makes sense if you consider that trading ranges are getting closer which tends to produce a sleepy kind of trade.
Gold pushed slightly above $1,900.00 in overnight Hong Kong trading but saw profit-taking in the London trade and continued lower in the domestic trade Friday.
This argument over the nature of “inflation” has been the dominant theme this week and it’s likely this discussion will continue to waver between two realities.
But keep in mind significant crosswinds continue to threaten both sides of the metal’s argument.
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