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Assessments / Blog 2018-12-04 RENEWED ECONOMIC OPTIMISM WILL HOLD METALS NEAR RECENT LOWS The US stocks are already up 1.5%, and gold 1.1% or more on news originating from Argentina from the G20 meeting. The commitment from the US and China to restore talks and hold off on new trade tariffs for a 90-day period of time allows the markets some breathing room and some time to digest future expectations. Combine that with the US Fed talking about taking a more dovish approach to rates and that rates are near “neutral” and we have a perfect setup for the global equity markets to rally back towards recent all-time highs. This type of equity opportunity will push the metals markets towards recent price ranges/lows with almost no attempt at upward price activity. In our opinion, we are looking for the next 14 days to be quite explosive in the equities markets and quite mute in the metal’s markets. Gold will likely stay below $1250 for the next 10~14 days as a renewed global equities rally takes hold. This is an excellent time to establish new long positions as our predictive modeling systems are suggesting that the metals markets should start to move higher near the end of 2018 and into early 2019.
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