June 10, 2019 -- Gold and silver prices moved higher last week. It was nice to see metals moving higher in the face of rallying stock prices.

Investors appear to be positioning for a weaker dollar and stronger inflation – forces which have largely been absent from markets for some time.

Fed bankers are now talking about interest rate cuts and the policy reversal is hurting the U.S. dollar.

Late last year the markets were still expecting 3-4 rate hikes in 2019.

The collapse in share prices and pressure from President Trump during the fall prompted Jerome Powell and the FOMC to “pause” on additional rate hikes.

It now appears the Fed will actually be adjusting rates lower, despite the sharp recovery in stocks since the lows in late December. Metals prices and the U.S. dollar may finally be starting to reflect a simple truth: markets are hopelessly addicted to debt with extraordinarily low interest rates.

The Fed funds rate for overnight lending is now well above 10-year Treasury yields. Yields curves are inverted. Shorter term bonds offer better rates than those with longer duration and that is an ominous signal.




Check out live precious metals prices here:
https://goo.gl/gy5XMA