The price analysis last month suggested that more time was needed for a sustainable rally. It concluded:
It looks like this market will turn sooner or later. Still, though, support has become resistance so the market has some work ahead of itself. Medium to long-term investors should feel very confident buying at current prices, even if the price action remains choppy in the short-term.
Gold and silver continue to flow out of the COMEX vaults.
This analysis focuses on gold and silver within the Comex/CME futures exchange. See the article What is the Comex? for more detail. The charts and tables below specifically analyze the physical stock/inventory data at the Comex to show the physical movement of metal into and out of Comex vaults.
People in the financial media tend to talk about inflation as an academic exercise. As a result, it’s easy to forget that rising prices cause real pain for real people. And Americans are feeling that pain today. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey highlights some ways inflation is impacting regular people. He also explains why he thinks stagflation is the most likely outcome of this inflation fight.
Three key takeaways:
- For weeks, the Bitcoin market has looked propped up by the whales, especially after the recent FTX disaster.
- Bitcoin hodlers should strongly consider moving into gold, silver, or at least Ether.
- Full disclosure, I have a complicated relationship with Crypto.
The Federal Government ran a deficit of $88B in October which is down significantly from the deficit last month that was a record for September due to the student loan forgiveness program. The deficit is also down compared to last October which was -$165B.
They say perception is reality. Based on the October CPI data, the perception is inflation has peaked. But what’s the reality? In this episode of the Friday Gold Wrap podcast, host Mike Maharrey digs into the CPI data along with the markets’ reaction to it and wonders if the inflation victory dance is a little premature. He also talks about the big rally in gold and central bank gold buying.
The perception is that CPI cooled significantly in October, but the data doesn’t quite bear this out.
The latest seasonally adjusted inflation rate for September came in at 0.44%. The YoY rate was 7.7%, or 7.8% when adjusting for Household Ops. which has not been consistently reported over the last year. The increase was actually above the previous month of 0.38%, but the YoY number fell because last October was 0.87% and fell off the report this month.
Gold rallied by over $50 an ounce last Friday and the rally has extended into this week with the yellow metal moving back above $1,700 an ounce. In his podcast, Peter Schiff explained why he thinks that gold has bottomed and this is a significant reversal.
Central banks added nearly 400 tons of gold in the third quarter, according to data compiled by the World Gold Council.
This was 300% higher than Q3 2021 and came in as the largest quarterly increase in central bank gold reserves since the World Gold Council started keeping records in 2000.
Another debt ceiling fight is looming on the horizon and it appears the US Treasury Department is preparing for the drama. Meanwhile, rising interest rates are rapidly increasing the cost of the massive national debt.
