Bad Economic News Boosted Precious Metals Prices on Tuesday

5:51 AM


September 7, 2016 -- Precious metals prices zoomed upwards on Tuesday. More bad economic news increased investor certainty the Fed will once again punt on hiking interest rates. Stocks finished modestly higher.

Bad economic news -- much weaker than expected performance in the service sector -- winds up being GOOD news for stock prices. This backwards dynamic is partly what Donald Trump was referring to during his Tuesday remarks about the Fed creating a ‘false economy.”

The news also hammered the U.S. dollar. A glance at its ugly price chart won’t inspire much confidence. Unless the dollar finds support quickly, it may soon be testing its June lows.

Dollar weakness is what precious metals bulls need to see in order for prices to finish the year as strongly as they began.

Live prices at MoneyMetals.com show gold currently trading at $1,352.00 per ounce on the global market, and silver is coming in at $20.06.

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