There’s been much debate about whether or not the reflation efforts would create inflation or if we’re just seeing a “normalization” in rates. We’ll see now, at these levels, if Treasuries pause and consolidate or continue to move lower as yields continue to climb.
The rotation out of risky assets and into the safe returns in Treasuries will slow. The bond market is telling us all that inflation is here. Once we embrace this inflation, gold prices will begin to march higher.
Platinum has been ignored for too long. Future demand will drive platinum back towards $2,000. It’s been there before; it won’t be that hard to get back.
Every time it looks like a recovery in gold prices is coming, it rolls back over. In reality, this market has been sideways with a slightly downward slope for the past 6 months.
The soybean market has lost momentum. The market hasn’t been able to trade and close above the key level of $12.00, even with all the bullish news of Chinese demand, tightening stocks, and drought conditions in Brazil.
Why has gold been trending higher over the last few days? In anticipation of a new stimulus deal before the election. Talks will resume Wednesday this week.
