Returning The Spatulas, Egg Free So Far Editors Note: Thursdays For Petes Sake was written at 6:10 a.m. The levels quoted in the commentary reflect the market at the time of writing The Fed remained consistent yesterday, staying the course in the midst of unconvincing economic strength. The market had bought the concept early in the week and buying the expectation, which proved disappointing as traders sold the news. Momentum failed to materialize at the breach of the $1,355 level. The argument for higher metals is premised on the belief that this unprecedented monetary easing will cause serious inflation. That may yet prove to be the case, but in the immediate future I believe deflation continues to be the battle for the Fed. The immediate fuel has now been deployed and the metals will require some serious new “headline” to continue advancing. This however may not occur until the year-end debacle begins with congress. Technically, the market remains constructive, but I suggest the $1,325 level will be tested and must hold. Momentum is absent, which suggests a heavy market. By Peter Hug Global Trading Director Kitco Metals Inc.
Posted on: Thu, 31 Oct 2013 13:12:08 +0000
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