Silver Sees Daylight, Gold Follows Its lead

Summary- Chip away at the Dollar
The G-20 meeting and photo-op was worth noting in that Russia and China seemed like winners. The US and UK came out losers. The Yuan will be admitted to the SDR basket of currencies in October. On the back of that China is going to market SDR bonds with the Yuan in them to its citizens in an attempt to kickstart the Yuan as a global currency. Russia is inserting itself into Iran’s oil dealings. Not discussed were the increasing gold holdings at the big 4 Central Banks. And it won’t be until it is too late. Bottom line is leaders left the summit seeing more moves to weaken the USD on every front. And the markets reacted accordingly. We sense a little leak in the boat they are all sitting in. That leak is betrayed in USD, Gold, and Silver pricing today. What happens tomorrow may reverse today’s activity as patience returns, but today matters a lot to us. That’s how we see it. Soren K.
In Focus
Global Stock Markets
written by @anilvohra69 emphasis ours
It is a matter of time horizon. In near term, Bears made no gains in market weak patch. Technicals swinging bullish again. Meanwhile, volumes have dropped sharply. It is important not to read too much into illiquid eerily calm markets. I think it is a coiled spring which I think will go lower and higher. In the medium term, the economy is slowing. The mean outlook is for a recession beginning in a year. The Bear case would be for it begin with the inauguration of the new POTUS. The Bull case is to postpone the recession till mid 2018. I see no case for QE till at least one year after we enter a recession.
The possible exception is Japan which has been in a recession for 25 years and tried everything, all with no luck.
We cannot disagree with anything said above. Note he “sees no case for QE” for now. That does not mean he is saying there will be no QE. Because who can predict what the Fed will do, fundamentals be damned- SK
Anil @anilvohra69 on Twitter, is a Retired UBS Rates Options trader steeped in global cash flows, Financial and Technical Analysis. We recommend following him for regular reality checks using charts and observations. He is a source of objective analysis and has no axe to grind from what we see.