Although the U.S. Markets are closed today for President’s Day, markets still trade electronically until 1:00 EST. The trends have not changed with equities making new highs once again, Crude exploding higher and Bonds getting crushed.
Gold continues to be under pressure and further separating from Silver. Platinum remains in its own world of trading, now trading over 1300 which is 7 – Year highs. The trends are clear: Gold in a downtrend and in danger of collapsing while Silver and Platinum remain in uptrends.
For now, the key level to watch is 1800 April Gold, a close below there would bring 1750 and 1700 into play. If Silver can get above 30 it could be off to the races and 1400 April Platinum is huge. We will stay with the trend and look for the Gold/Silver ratio to continue to fall, as of today it is 65.
There is a much bigger story underneath the surface of the Bond and Gold Markets. While the geniuses from the FED continue to tell us there is no inflation, Bonds disagree. There is no question inflation is well above the FED’s antiquated way of tracking. The Bonds are calling for inflation while Gold is not. Which one will be right?