Record highs in the stock market, 6-year highs in US consumer sentiment, the longest streak of +100K NFP in 12 years, 6-year lows in unemployment rate, 2-year highs in bond yields. With these dynamics at play, the Fed ought to scale down monthly asset purchases, by at least $10 bn this year (even if it is symbolic) to account for the change in fundamentals over the last 6 months (and not the last 6 weeks). Failure to do so, is serious lapse of credibility to Bernanke and doves at the Fed.
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Gold/Silver ratio broke below the important horiz support of 63, which could mean further declines in the ratio & fresh upside in both XAUUSD & XAGUSD.
Starting from point 1 on the chart, when gold/silver ratio bottomed at 63 and rebounded from 2016 to 2019, both gold and silver fell against the US dollar.
Similar development from point 2, when gold/silver ratio bottomed at 63 and rebounded from 2021 to 2022, both gold & silver fell against the US dollar.
Latest Hot-Chart - Dec 26
Gold Next Move
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Uncertain December
The oscillating changes in market expectations for the December FOMC meeting implies more volatility into the next 4 weeks.
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