This is another FED week; we expect more of the same. Inflation is transitory although CPI was hot and more ridiculous excuses from the FED. The bind market will continue to push the FED to hike but that is unlikely for now. The FED is wrong as they have been throughout history and like markets, we don’t expect this time to be different.
The FED has a sneaky plot to digitize the currency which will be made easier with their plans and ignorance. Digitizing currency could be a huge boom for metals, especially gold. However, from a physical standpoint we are buyers across the board. Although Platinum is in a bear cycle now, we are physical buyers because of its long-term value.
Our models are long gold and silver, would be short platinum as traders but it is not liquid enough for our members. However, this week we could finally see gold and silver breakout of their tight ranges to the upside. There is no guarantee that the metals will breakout or be to the upside if they do but all signs point higher.
Patience, discipline, and money management always win the day.
Todd Horwitz Chief Strategist BubbaTrading.com
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