What's Really Happening - My TakeMetals are responding because the market perceives we are getting close to a Fed Pivot. Yesterday, the Fed raised their Fed funds rate by 75 basis points as EXPECTED by the market. But what's really interesting is that Powell indicated that they do see a slowdown in the economy and future rate hikes WILL be data dependant. In other words, the FED is paving the way for an absolute reverasl and PIVOT soon. Forget the pundits that are screaming higher rates and over 3.0% Fed funds rate by year end. Bond market is saying NO Mas Fed will be cutting before year end - inflation be damned LOL.
Today's 2nd QTR GDP NEG print just reinforces the fact that the US is already in technical rescession. Look at the yield curve. Long rates are heading lower and 2/10s are deeply inverted. The bond market already knows the Fed will pivot soon. Markets love easy money so stock market is rocketing up yesterday and today. Gold and Silver also love easy money as interest rates will soon start heading south again. Gold and Silver are usually the first to respond months before rates start heading the other way. Imho we have likely seen the lows in the PMs. Tune out the noise and listen to what the bond market already knows. My 2 cents.