BLS releases headline CPI inflation report today for January 2023

BLS releases headline CPI inflation report today for January 2023

Traders and investors have been patiently waiting for today’s inflation report to glean information on whether or not the Fed will maintain its current monetary policy or adjust it to a somewhat looser policy. The report came in very close to estimates and did indicate that inflation is continuing to diminish. However, the increase in headline inflation at 0.5% was the biggest month-to-month increase since June 2022.

The report indicated that headline inflation (including energy and food costs) declined for the seventh straight month. January’s numbers came in at 6.4% year-over-year which is a month-over-month increase of 0.5%.

I believe the biggest takeaway from today’s report was that when combined with the last jobs report that was exceedingly robust it gives the Federal Reserve the ammunition to continue its aggressive monetary stance because today’s report and the jobs report last week indicate that the strength of the economy is such that it can handle recent rate hikes by the Federal Reserve.

Some analysts including myself believe that soon inflation reduction will become more difficult than it has been in the past. Those analysts are anticipating that at some point inflationary pressures will become more persistent and harder to tame. Another issue is that the Federal Reserve cannot alone solve the problem because the administration is the political body that sets the budget and continues to increase the national debt by spending more than before and most importantly increasing the national debt.

Another takeaway from today’s report is that it is highly probable that the Federal Reserve will raise rates again in March. According to the CME’s FedWatch, the probability of a ¼% rate hike at the next FOMC meeting is 90%. If there is any sunshine or bright news to today’s report it is that I believe that it will be highly likely that the Federal Reserve will raise rates by ¼% next month but then pause because there is an intrinsic time lag between a rate hike and seeing how that affects the economic contraction that is the goal of the Federal Reserve to reduce inflation.

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Gold futures basis the most active April contract is currently trading at $1.30 higher and fixed at $1864.80. Dollar neutrality neither helped nor hindered today’s move in gold. But the fractional upside move indicates that today’s report has not dramatically changed market sentiment for gold and most likely will not be the single factor that results in a key reversal from the bearish market sentiment currently to bullish market sentiment.

My last concern is the fact that the revision for the December inflation report revealed a different picture and outlook and that raises the question as to whether or not the numbers released today are going to have a similar revision further down the road.

By Gary Wagner

Contributing to kitco.com

Time to Buy Gold and Silver

Tim Moseley

Gold silver down on position evening ahead of US CPI

Gold, silver down on position evening ahead of U.S. CPI

Gold and silver prices are lower in midday U.S. trading Monday, with silver hitting a 2.5-month low and gold a five-week bottom. The near-term chart postures for both metals have deteriorated recently, which are prompting some technical selling pressure. Also, weak long liquidation in the gold and silver futures markets is likely featured today, ahead of a key U.S. inflation report Tuesday. April gold was last down $10.40 at $1,864.00 and March silver was down $0.175 at $21.90.

Traders and investors are awaiting the U.S. economic data point of the week on Tuesday morning–the consumer price index report for January. The CPI is seen up 6.2%, year-on-year, compared to the rise of 6.5% in the December report. On Thursday, the U.S. producer price index report is released. The expected CPI number is still hot—even if it is down from previous CPI reports–and a print that comes in close to it may still keep the Federal Reserve in a monetary-policy-tightening mode for the next few months. That’s likely in part why gold and silver bulls are mostly standing on the sidelines today.

Global stock markets were mixed overnight, with European shares mostly higher and Asian shares mostly lower. U.S. stock indexes are higher at midday.

 Gold price is going to $2,200 as central banks break the global economy – Degussa's Thorsten Polleit

The key outside markets see the U.S. dollar index slightly firmer. Nymex crude oil futures prices are near steady and trading around $79.50 a barrel. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.724%.

There was no major U.S. economic data released Monday.

Technically, April gold futures prices hit a five-week low today. Bulls still have the slight overall near-term technical advantage. However, they continue to fade. Bulls’ next upside price objective is to produce a close above solid resistance at the February high of $1,975.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at today’s high of $1,877.20 and then at $1,885.00. First support is seen at $1,850.00 and then at $1,835.00. Wyckoff's Market Rating: 5.5

March silver futures prices hit a 2.5-month low today. The silver bulls and bears are on a level overall near-term technical playing field but bears have some momentum on their side. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.00. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at $22.25 and then at last week’s high of $22.635. Next support is seen at $21.50 and then at $21.00. Wyckoff's Market Rating: 5.0.

March N.Y. copper closed up 360 points at 405.35 cents today. Prices closed near the session high. The copper bulls have the overall near-term technical advantage. However, a fledgling price downtrend is in place on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the January high of 435.50 cents. The next downside price objective for the bears is closing prices below solid technical support at 380.00 cents. First resistance is seen at last week’s high of 412.05 cents and then at 417.50 cents. First support is seen at the February low of low of $3.9930 and then at 395.00 cents. Wyckoff's Market Rating: 6.0.

By Jim Wyckoff

For Kitco News

Time to Buy Gold and Silver

Tim Moseley

US fighter jet shoots down UFO over Canada Trudeau says

U.S. fighter jet shoots down UFO over Canada, Trudeau says

WASHINGTON/OTTAWA, Feb 11 (Reuters) – A U.S. F-22 fighter jet shot down an unidentified object over Canada on Saturday, the second such shootdown in as many days, as North America appeared on heightened alert following a week-long Chinese spying balloon saga that drew the global spotlight.

Canadian Prime Minister Justin Trudeau announced the shootdown on Twitter and said it took place over the Yukon territory in the country's north. He said Canadian forces would recover and analyze the wreckage from the object.

Trudeau also said he had spoken with U.S. President Joe Biden about the incident, a day after Biden ordered a shootdown of an unidentified flying object over sea ice near Deadhorse, Alaska. The U.S. military on Saturday was still tight-lipped about what, if anything, it had learned as recovery efforts were underway.

The Pentagon on Friday offered only a few details, including that the object was the size of a small car, it was flying at about 40,000 feet and could not maneuver and appeared to be unmanned. U.S. pilots and intelligence officials have been trying to learn about the object since it was first spotted on Thursday.

"We have no further details at this time about the object, including its capabilities, purpose, or origin," Northern Command said on Saturday.

It noted difficult arctic weather conditions, including wind chill, snow, and limited daylight that hinder search and recovery efforts.

"Personnel will adjust recovery operations to maintain safety," Northern Command said.

On Feb. 4, a U.S. F-22 fighter jet brought down what the U.S. government called a Chinese surveillance balloon off the coast of South Carolina following its week-long journey across the United States and portions of Canada. China's government has said it was a civilian research vessel.

Some U.S. lawmakers criticized Biden for not shooting down the Chinese balloon sooner. The U.S. military had recommended waiting until it was over the ocean out of fear of injuries from falling debris.

Time to Buy Gold and Silver

Tim Moseley

This is the next big catalyst for gold price

This is the next big catalyst for gold price

Gold is looking at its third consecutive week of losses after January's rally, which saw its best start to the year in over a decade. And now all eyes shift to next week's U.S. inflation report, with analysts saying it could be the next big catalyst for the precious metal.

After surging to $1,975 an ounce last week, April Comex gold futures are now trading at $1,870.70 an ounce, down 5.3% from that peak.

"The dollar is reverting, and the Fed remains hawkish, which is weighing on gold," RJO Futures senior market strategist Frank Cholly told Kitco News.

Gold's bullish sentiment began to change after a strong employment report out of the U.S. last week showed job gains of 517,000 in January.

This was followed by Federal Reserve Chair Jerome Powell confirming markets' worries that if the U.S. economy continues to surprise on the upside, the central bank would be forced to raise rates higher than anticipated.

Powell brought out just the right amount of "Fed speak" when he appeared at the Economic Club of Washington, D.C., Tuesday. On the one hand, he reiterated that the "disinflation process" has begun. On the other hand, he warned that if data continue to come in stronger, the Fed will move peak rates higher.

"It really fits well with the definition of what we often call Fed speak, which is a strategy by the chairman of the Fed to speak out of both sides of their mouth so that the markets get both signals," Gainesville Coins precious metals expert Everett Millman told Kitco News. "The hope is that things remain steady and both sides have something to latch to. That's exactly what Powell did. The most likely outcome here is that the Fed continues along its rate hike path until the economy falters."

What to watch with the CPI report

Next week, the gold market is gearing up for a number of key macro releases. Tuesday's CPI report is the one to watch as it could be the next big catalyst for the precious metals space, TD Securities senior commodity strategist Daniel Ghali told Kitco News.

"We need a substantial catalyst for subsequent selling activity to ensue in gold. It could come in the form of next week's CPI data. At the same time, if the CPI won't be a big enough shock, gold won't see a lot of selling activity into next week," Ghali described.

Even if the CPI report continues to show slowing inflation, the Fed won't be ready to take its foot off the gas yet, said Cholly. "Gold has a little more downside," he said.

Market consensus calls are projecting annual inflation to slow to 6.2% in January from December's 6.5%.

"We think that inflation will fall by more than the consensus, which should give a lift to commodity prices as it will allay fears of a more hawkish Fed and higher U.S. interest rates for longer," said analysts at Capital Economics.

Ghali also pointed out that a large cohort of investors still sees gold as overvalued, but it is unclear who would be willing to sell based on the flow perspective.

The recent central bank gold buying has supported gold, and the market is waiting to see if that trend will continue.

The participants that have driven the gold rally above $1,800 have been central banks and short-covering, Ghali said. "If that trend continues, then I would feel more comfortable with gold holding above $1,800," he noted.

The World Gold Council amended its Gold Demand Trends report this week, stating that central bank gold buying was at a record high in 2022, with 1,136 tonnes purchased.

Gold price levels

Gold's potential trading range is pretty wide at the moment, with strong support currently at $1,800 an ounce and resistance at $1,900, Ghali noted.

Cholly is looking at the $1,850-$1,855 range. "Moving averages are important. We are sitting at a 50-day right now. And the 200-day is at $1,812. Somewhere between these two marks, there is market equilibrium. Gold will consolidate and recover from those levels," he said.

Key data next week

Other data to keep an eye on include U.S. retail sales, the Producer Price Index, and industrial production.

"January activity data is going to be strong throughout. The contrast between the weather in mid-late December, where it was incredibly cold, versus a very mild January, couldn't be more stark," said ING chief international economist James Knightley. "This means there will be delayed consumption, plus better weather means more people out and about, which in all likelihood will lift January spending. We already know auto sales were very strong and that will lift retail sales mightily on its own."

Tuesday: U.S. CPI

Wednesday: U.S. retail sales, N.Y. Empire State manufacturing index, U.S. industrial production

Thursday: U.S. PPI, U.S. jobless claims, U.S. housing starts and building permits, Philly Fed manufacturing index

By Anna Golubova

For Kitco News

Time to Buy Gold and Silver

Tim Moseley

Investors wait for CPI numbers but the bearish sentiment remains on Fed’s narrative

Investors wait for CPI numbers but the bearish sentiment remains on Fed’s narrative

Gold investors had a wake-up call last Thursday when gold futures hit $1974, the highest value of 2023. But that same day also marked the beginning of a correction. Gold would lose approximately $90 per ounce over last Thursday and Friday.

This week started with a whimper with gold trading to a higher high and higher low on Monday, Tuesday, and Wednesday. However, each day had fractional gains and through the eyes of a Japanese candlestick chart were identified as spinning tops which always have a small real body (the rectangle drawn between the open and closing price of a trading session). While gold prices did have gains it was obvious that this strength was tepid at best.

On a technical basis, gold was attempting to find support at the 38.2% Fibonacci retracement level which is considered an acceptable but shallow correction. The caveat though is that gold as well as the financial markets at large have been headline driven based on the latest comments of Federal Reserve officials.

In December the Federal Reserve released its most current economic projections and “dot plot” which contained the anticipated rate changes by the Federal Reserve as 17 Federal Reserve members placed their opinion (as a dot). December's projections of interest rates in 2023 contained the stark realization that unanimously voting members of the Federal Reserve anticipated taking the current benchmark rate higher with the goal of just over 5% and maintaining those elevated rates throughout the entire calendar year of 2023.

The elevated hawkish tone reflecting expected actions by the Federal Reserve began to factor into the current pricing of precious metals, US treasuries, and stocks. A faction of market participants continues to believe that there would be rate cuts this year contrary to what the Federal Reserve’s narrative was and continues to be. However last week’s announcement by the Federal Reserve was that they might have to take rates to a higher target closer to 6%. This most likely is what prompted the selloff at the end of last week.



Thursday was the only day this week in which gold prices closed below the opening value and today’s action resulted in a fractional decline of roughly $3.30. As of 4:45 PM EST, the most active April futures contract is currently fixed at $1875. Silver also has been trading under pressure for the better part of this week with the most active March contract attempting to hold pricing at $22 per ounce. Currently, March silver futures are fixed at $22.01 after factoring in today’s decline of just over $0.12 per ounce.

Dollar strength was certainly a strong component providing moderate to strong headwinds as dollar strength characterized today’s action. The dollar index gained 0.37% in trading and is currently fixed at 103.49.

Investors are waiting for the next report on headline inflation vis-à-vis the CPI next Tuesday. They are hoping to gain better insight into possible pivots by the Federal Reserve concerning their rate hikes. The most important takeaway of price action over the last few weeks has less to do with any technical indicators and more to do with the event-driven news based on the current narrative of the Federal Reserve.

By Gary Wagner

Contributing to kitco.com

Time to Buy Gold and Silver

Tim Moseley

LiveGood ORGANIC COFFEE

LiveGood ORGANIC COFFEE

Healthy Organic Weight Management Coffee with Mushrooms

Yes, this is very likely the longest name for a coffee you’ve ever seen. But the truth is, with all of the amazing benefits and ingredients we’ve packed into this blend, we could have added even more words, like adaptogens, green tea, healthy fiber, maca, and especially delicious!

Not only does LiveGood Organic coffee combine the highest quality ingredients from the cleanest, most pure and lush places on the planet, it is the FIRST and ONLY coffee enhanced with healthy fiber to reduce hunger, formulated with maca to help support learning and memory while improving mood, plus green tea to promote healthy brain function and stimulate fat burning, AND adaptogens in the form of 6 of the world’s most powerful mushrooms to ease stress, support a healthy body, and help you feel great!  No coffee on the planet provides as many benefits as LiveGood Healthy Organic Weight Management Coffee with Mushrooms ðŸ˜Š

From the first time you taste our delicious blend, and experience the amazing results, you may never want to drink another coffee ever again!

https://www.ShopLiveGood.com/wellnessforyou

Tim Moseley

UPDATE: Markethive On The Cusp Of Internal Wallet Launch

UPDATE: Markethive On The Cusp Of Internal Wallet Launch

Great things are taking place behind the scenes at Markethive. It’s time for another important update, as we are on the cusp of releasing what has been an extraordinary task of building and integrating an extremely complex wallet and accounts system into Markethive. This has never been done before in the social media, marketing, and broadcasting spectrum. Hence, we’ve needed to take every precaution to make it impenetrable in terms of security and achieve scalability for the influx of users once the floodgates open. 

 

The way forward for any business is to be online, given the current state of the world, not to mention the virtual technology that has become part of our daily lives. Considering the many entrepreneurs, businesses, and startups that use Markethive for various reasons, it embodies a cottage industry, allowing members to monetize their various initiatives within Markethive. Individual merchant accounts for eCommerce payments from your storefronts are just one aspect that will be available. Find out more about that here.  

Image source: ILP. A Powerful Way To Spread The Wealth 

Bonus ILPs Just Got Bigger

As all Entrepreneur One holders will know, the 0.5 ILP bonus for the last year’s loyalty to Markethive will be added to your wallet under the ILP summary by the end of February 2023. But wait, there’s more…

 

The CEO and founder of Markethive, Thomas Prendergast, has announced there will be another bonus of 1 ILP for all Entrepreneur One Upgrades who stay current with their subscription from February 2023 until February 2024. That means, as well as the 0.1 ILP you accumulate yearly, you will receive one whole ILP as a bonus for being consistent with your E1 subscriptions for that 12 months. 

 

Also, if you have any number of accounts, for example, ten E1 accounts, you will receive a bonus of 1 ILP for each account. It is a highly generous gesture and one that will be upheld. It is a gift for your loyalty, so the acquisition of your regular portions of ILPs is not negated; it is not capped.    

Entrepreneur One Promo Code Pending

Apart from the many other benefits of being an E1, the Promo Code gives a substantial advantage in your marketing efforts. Attach the Promo code to your Markethive capture page or storefront group for prospective sign-ups or members participating in your offer. 

 

You can use any of the Markethive products, such as The Boost or Wheel of Fortune, impressions and tokens, pay with Hivecoin, and offer these giveaways as an incentive. So, not only do they get the Markethive airdrop of tokens upon joining, but they also receive extra rewards to help them in their marketing efforts. The great news is that the Promo Code is on the threshold of being released to Entrepreneur One members. 

 

The Entrepreneur One Exchange  

Once the release of the wallet is announced, the Entrepreneur One Upgrade will not be available for any new or free members from the Markethive administration. However, there will be an E1 Exchange where existing E1 associates can sell their E1 accounts to any member who desires the subscription. Some members have more than one or even ten E1 accounts, so they may choose to sell one. 

 

This means the person buying the E1 assumes the monthly subscription and, if the account is kept current, will receive a 0.1 ILP at the end of 12 months of consecutive payments. This will accumulate for 20 years, whereby a balloon payment is paid out, or you have the option to continue and roll it over.  

 

It’s important to note the E1 associates that sell their accounts will keep the ILPs they’ve accumulated. They will not be given to the new subscriber. The new subscriber will earn their own ILP portions when they take over the account. 

 

It’s also important to note that if you decide to opt out of the E1 subscription, the ILPs or part thereof you have garnered to date remain active, and you will be compensated when the revenue payments commence.  The Entrepreneur One Upgrade is fundamentally a way to reward loyal associates of an ILP worth $10,000 for only $1,200 or $1000 if you pay the subscription yearly.

Wallet Security Ready – Wallet Launch On The Cusp

Phase Two of the wallet, which includes the extra layer of security, the 2FA, is complete and activated. It’s crunch time for Phase Three and on the verge of launching the wallet. The technology built for our cold and hot wallet security is now ready for the interfaces to be installed and will be in the BETA phase for approximately two weeks. The announcement of the wallet release will take place soon after, along with the Promo Code advantage for Entrepreneur Ones only. 

 

Immediately following the wallet launch, the Premium Upgrade will be activated for members who want to take advantage of the many features and benefits that will accelerate their earnings and results. The upgrade has five price levels starting at $9.95 per month. You can find out more about the Premium Upgrade here

 

The revenue generated from the Premium Upgrade initiative is primarily income which means the ILP holders can look forward to the dividends of their ILP shares. Also, once the wallet is ‘all systems go,’ the new dashboard development and integration is the priority. This is an exciting time for Markethive and its community; all is coming to fruition, and all in the Lord’s timing.  

Bitcoin Talk Engagement

With all the security in place, it’s time to introduce Markethive and our coin to the world of crypto exchanges. Also, prepare for coin transactions in our four coin wallets, Hivecoin, Bitcoin, Solana, and Elrond, in the Markethive internal wallet. 

 

As part of Phase Three, the final stage before launching the wallet, we, as a community, are obliged to help get the word out and increase the posting activity at the Bitcoin Talk Forum. This prominent crypto meeting place is the #1 place to create activity, and crypto exchanges use it for their due diligence on prospective coins that have applied to be listed. They also look at how old, and active the thread is, so the more active, the better. 

 

As discussed at the last Markethive meeting, the members participating in the Bitcoin Talk campaign will be rewarded. All you need to do is post in the forum, copy your post link, and paste it into the Markethive group created for this engagement. 

Image source: Entrepreneur One Explained 

 

If you are considering upgrading to Entrepreneur One before the opportunity ends (and remember that you get a bonus of 1 whole ILP this year for the full 12 months), there’s still time. Just click on the round E1 icon in the tray at the top of the home page. There will also be a countdown badge of 30 days placed on the Markethive home page in full view, giving you ample notification of its cessation to members.

Come to our Sunday meetings at 10 am MST as we approach massive significant upgrades and the wallet launch. See and hear explanations, ask questions, and witness the ever-evolving technology and concepts of Markethive. The link to the meeting room is located in the Markethive Calendar.


P.S. When we close the ability for members to acquire an Entrepreneur One from the company, it will also signify closing access to purchasing anymore ILPS from the company. There will also be an exchange for members to buy and sell their ILPS. But I want to make something very clear.

"For those early members who purchased ILPs with Bank wires and Bitcoins, we will distribute all remaining ILPs left over to you. Think about that. We appreciate what you have done."

In 2020 LinkedIn revenue reported 8.05 billion. Markethive will eventually eclipse this but when Markethive reaches 1% of LinkedIn subscribers, with revenue reaching 85 million, the ILPs will receive 20% of that revenue shared with the 1000ILPs, making each ILP worth $17,000 that year. And ILPs pay this revenue year after year. Think about that.

Number of LinkedIn Users Over a 14-Year Period

 


 

About: Thomas Prendergast. (United States) I am the CEO and Founder of Markethive. Having received the vision from our Lord in 1996 to build an end time platform for entrepreneurs to be the shelter in the storm. It is called Markethive. Find me at my Markethive Profile Page | My Twitter Account | my Facebook Account | and my LinkedIn Profile.

 

 

 

 

Tim Moseley

Thinking Your Way to Success

Thinking Your Way to Success

Do you often envision yourself achieving great things, and then follow this up with a negative thought process? Do you talk yourself out of your dreams before you even begin to pursue them? If so, you need to change the way you think.

When you change your thought processes to success thinking you truly can change your life. Positive thoughts enable you to reach out and grasp the success you seek.

Affirmations and You

Wanting to succeed and being able to envision your success is a great place to start. When you can do this, you’re giving yourself permission to change your life, attain your goals, and be a success.

There will be days when it’s more difficult to think in a positive and success affirming way; during these times you can turn to a useful tool called affirmations.

Affirmations have helped a lot of people turn their thinking into positive thinking, propelling them toward their goals in a new and exciting way. Affirmations for success can help you change the way you think about everything.

If you’re honest with yourself, you may find that much of your inner dialogue, how you feel about yourself, and even the way you carry yourself are negative. This destructive thinking sets you up to fail or causes you to give up before you ever really get started.

As with anything new, creating a success mindset will take practice to give you the best results. The good news is: you can get all the practice you need with the help of success affirmations.

 

ecosystem for entrepreneurs

 

What Are Affirmations?

Affirmations are positive statements that activate your mind to change your life, one thought at a time. They enable you to accomplish the things you wish to achieve.

Affirmations work because each word we speak has power, the power to evoke emotions. They work because they allow you to program – or reprogram – your thought processes, replacing negative thoughts with positive ones.

For example, if you find that you’re telling yourself what you can’t do, you can replace these negative thoughts with an affirmation for success, such as, “I am capable of succeeding without feeling overwhelmed or unfulfilled.”

If that statement doesn’t quite fit you, there are many affirmations for success, such as “I am worthy of great success.” All you need to do is want to feel this way, and then every time you say these statements aloud you reaffirm them to your subconscious.

Is It Really This Easy?

Many of the most successful people in the world aren’t much different than you. The key characteristic that sets them apart, though, is that they have a success mindset.

It seems too simple to be true, but when you talk to people who’ve experienced success, you’ll find that they use statements like these to drive them toward their goals and away from negativity. Their inner dialogue is one of success and achievement.

If success came naturally to all of us, we would all be successful. Unfortunately, in this day and time, many people prefer to focus on the negative, rather than embrace success.

With affirmations, you can overcome your limiting, negative thoughts and make it second nature for you to choose success. Success can be a reality for you, so long as you believe and reaffirm your positive thoughts consistently.

solveres

Tim Moseley

Uncertainty wanes as investors accept the resolve of the Fed

Uncertainty wanes as investors accept the resolve of the Fed

For the most part, the uncertainty that defined market sentiment has pivoted to a sense of clarity about the future forward guidance of the Federal Reserve. It has become clear that the Federal Reserve will make good on its commitment to continue rate hikes and sustain those higher levels throughout this entire year. Any doubt in that the Fed would back off from its current strategy has diminished. Simply put, reality has finally set in that the Fed's words were not just rhetoric but a warning to investors that they plan to put into motion what Chairman Powell first announced on August 25 last year at the Jackson Hole economic symposium.

Jerome Powell’s keynote speech was meant to warn the American public to brace as they would begin an aggressive and hawkish process to bring inflation back down to their 2% target.

“Price stability is the responsibility of the Federal Reserve and serves as the bedrock of our economy. Without price stability, the economy does not work for anyone. In particular, without price stability, we will not achieve a sustained period of strong labor market conditions that benefit all. The burdens of high inflation fall heaviest on those who are least able to bear them.”

That message fell on deaf ears and was not taken seriously. Both individual citizens and corporations disregarded this message and continued to run business as usual.

“Restoring price stability will likely require maintaining a restrictive policy stance for some time. The historical record cautions strongly against prematurely loosening policy.”

Six months after this announcement market sentiment was still under the belief that the Federal Reserve would back down and not implement the hawkish steps needed to restore price stability. Investors continued to base their decisions on the belief that the Federal Reserve would not make good on this commitment. Slowly market sentiment moved to a stance of uncertainty rather than doubt but that has now changed over the last couple of weeks.

The unfounded optimism diminished, as clarity of the upcoming steps by the Fed needed to be taken seriously. Finally, corporations and individual investors have accepted the reality that they need to brace themselves for an upcoming and continued restrictive monetary policy.

In regards to investors that have been bidding the price of gold higher, market sentiment has now incorporated the reality of higher rates that will remain throughout 2023. This most likely will take gold lower as more and more investors recognize the reality that the Fed will make good on the commitment “to do what it takes” to bring inflation down to their 2% target.

For those who would like more information simply use this link.

Wishing you as always good trading,

By Gary Wagner

Contributing to kitco.com

Time to Buy Gold and Silver

Tim Moseley

Gold silver slightly up in quieter trading

Gold, silver slightly up in quieter trading

Gold and silver prices are mildly higher in midday U.S. trading Wednesday. The precious metals markets are getting a very modest boost from slightly friendly outside markets on this day that include a slightly lower U.S. dollar index and firmer crude oil prices. However, gains in both metals were limited by rising U.S. Treasury yields today. April gold was last up $3.10 at $1,887.80 and March silver was up $0.183 at $22.35.

The gold and silver market bulls have lost steam the past week and are working to stabilize prices, which they can correctly argue has occurred at mid-week. Still, both metals markets remain very wobbly.

The marketplace on Tuesday afternoon saw Fed Chairman Powell at a Washington, D.C. economic club meeting reiterate that U.S. inflation has started to come down but has a long way to drop to meet the Fed's inflation objectives. Powell was pressed on last Friday's strong jobs report possibly changing Fed policy to more hawkish, but Powell brushed that notion off, at first. However, at the end of his remarks he said more strong U.S. economic data could force the Fed to raise rates more than it expects at present. Stock and financial markets gyrated during and right after his comments but at the end of the day Tuesday, Powell's remarks were deemed as not surprising and did not have a major, lasting impact on markets.

 Gold price to hold the line at $1,800 but investors will have to weigh the costs as real rates remain positive – CIBC

Global stock markets were mixed overnight. U.S. stock indexes are lower at midday, which is also providing a bit of underlying support for the safe-haven metals.

 

The key outside markets see the U.S. dollar index just slightly weaker. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.681%. Meantime, Nymex crude oil futures prices are up just a bit and trading around $77.50 a barrel.

Technically, April gold futures prices hit a four-week low Monday. Bulls still have the overall near-term technical advantage. However, a bear flag pattern has now formed on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at the February high of $1,975.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at $1,900.00 and then at $1,915.50. First support is seen at this week's low of $1,873.20 and then at $1,850.00. Wyckoff's Market Rating: 6.5

March silver futures prices hit a two-month low Tuesday. The silver bulls have the slight overall near-term technical advantage but need to show fresh power soon to keep it. Prices have seen a bearish downside "breakout" from a sideways trading range at higher levels. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.50. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at this week's high of $22.635 and then at $23.00. Next support is seen at this week's low of $22.065 and then at $22.00. Wyckoff's Market Rating: 5.5.

March N.Y. copper closed down 500 points at 403.00 cents today. Prices closed nearer the session low. The copper bulls have the overall near-term technical advantage but are fading. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the January high of 435.50 cents. The next downside price objective for the bears is closing prices below solid technical support at 380.00 cents. First resistance is seen at today's high of 411.65 cents and then at 420.00 cents. First support is seen at this week's low of 399.30 cents and then at 390.00 cents. Wyckoff's Market Rating: 6.5. By Jim Wyckoff

For Kitco New

Time to Buy Gold and Silver

Tim Moseley

The Artist that came out of the Winter