The Cartel Is In A Box With Gold & Silver Prices But Don’t Start Celebrating Yet

So the question: Does the Fed even have one rate hike left, or will the next financial crisis come first?

Looking at commodities, crude is about to facing some resistance now that spanned two months in 2015:

If the war drums beat louder, however, or if the petro-yuan really picks up steam, the price of crude oil could get moving in a hurry. In the immediate short term, however, it would seem that the shorts and the longs would be working out their positions, especially after crude has risen 9 of the last 10 weeks.

But any middle east pop-offs, or shock global currency events, and all bets are off.

Copper is facing some minor but also major support:

Since it is not the prettiest support, we’ll call it $2.93. However, a drop below $3 would bring out all the bears with their “see, I told you so it was a fake rally” memes. However, if the price of oil is rising, which it is, then it will cost more to get copper out of the ground, so that fundamental reason in addition to the technical support levels translates into a price that will have difficulties breaking though to the downside.

Finally, looking at the stock market, this sees appropriate:

That’s the sole remaining original Dow component business. Gold is beating GE this year, and to understand the significance of this, see yesterday’s post about why gold beats the stock market, hands down.

On the calendar this week, there is a busy week with data points and a slew of Fed Head speeches.

It is a little light early on:

But come Wednesday and especially on Thursday, the data releases and events really start picking up:

Over the course of the week, several key inputs the “data dependent” Fed uses to determine interest rate policy will be on Tuesday, Wednesday, and Thursday. But it stands to reason they will pump out whatever number that supports their narrative.

And then there’s the real economy.

Stack accordingly…

– Half Dollar has been on the leading edge of Gold News and Silver News Since 2011. Each month, more than 250,000 investors visit to gain insights on Precious Metals News as well as to stay up-to-date on World News impacting the metals markets.

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