Image Source: Pixabay

A review of the potential path for Fed policy, bonds, interest rates, and the eventual point where the central bank will be forced to pivot back to more accommodative policies. It is at this point where gold and later silver and the mining stocks will eventually diverge from the general markets, as a counter-cyclical investment. While I am very bullish on the medium to longer-term fundamental and technical setup in the PMs, we review the more near-term pressure based on a return in gold to the 40-month moving average, or even test the $1675 support level again, based on what I am looking at on the monthly charts. I am looking to $18.75 as strong support for Silver, providing support levels in both GDX and GDXJ where I’d expect a bounce in the very near term. I will be watching the 10-year and 2-year yields in the bond markets carefully for signals of a turn.

Video Length: 00:16:44