Despite Goldman Sachs "short gold" recommendation - which came within pennies of being stopped out last week - traders, investors, and safe-haven seekers continue to push into the precious metals.
Remember last week when oil prices spiked despite a rise in crude production, inventory builds, continuing storage concerns at Cushing, and the admission that there is no March OPEC/NOPEC "freeze" meeting. Well that's all over as Russia's Oil Minister Novak conmfirms Russia's acceptance of Iranian rights to increase oil output post-sanctions, thus blowing away any ideas of a "freeze" or hopes for a cut in global production. April WTI just broke back to a $36 handle - erasing all of those algo gains...
2019.40 - that is the line in the sand for today - and for now, the S&P 500 cash index is trading back below this key technical support level...
The miracle bounce to the 200-day moving-average...
And today, for now, we have lost that level...
The battle begins.
Submitted by David Yager via OilPrice.com,
As we warned last week, the inflation genie is out of the bottle…
We now have confirmation that the Fed is aware of this…
Two key Federal Reserve officials said Monday they expect inflation to get closer to the central bank's target…
Their comments came after data late last month that showed core inflation rose 1.7 percent in the 12 months ended in January.
Source: CNBC
Indeed, even the Fed’s Vice Chair Stanley Fischer has warned inflation is coming… and the Fed wants it!