More U.S. economic news - Economy slowing- Home sales were down 1.6% last month, expected -2% this month but GOT -3.9% (ie bad for market and U.S. dollar)
- Natural gas storage in prior month was 89B, expecting 89B this month, got 80B ! (will add to already red hot inflation
- KC manufacturing index: was 28 last month, now at 19 (means manufacturing in that area is slowing which is bad for the U.S. market and bad for the U.S. dollar
Global inflation is red hot and it sure looks like the U.S. economy is going to go into recession before interest rate hikes can slow inflation meaningfully. (ie Stagflation in my mind & I have been saying it was coming for the last year - it's HERE) If the U.S. market tanks in a big way, the Fed will either have to pause on the rate hikes (which will send the dollar much lower - good for silver) or they will have to keep tackling inflation and set in motion a global train wreck in the financial markets. (Given the immense debt levels around the world)
Bottom line:
- The U.S. dollar started dropping again after the news came out & either scenario (inflation or global train wreck should be good for precious metals, especially when crypto continues to sell off in this cycle's ponzi scheme - anyone remember the dot com bust ) With Alexco's streaming agreement helping shore up any downside in silver price (ie Wheaton would have to pay more for lower grades and prices) the only thing left for big results is full production & I expect major improvement in the 2nd Qtr. I doubt they get to full production in the 2nd Qtr, but I bet we will be able to see the end of the tunnel when the next numbers come out (or when guidance comes out, maybe at their next meeting in early June)
Good luck LONGs !