Loading ...[anybody think this is especially bullish?]
Into the new week we get the Federal Open Market Committee’s Wednesday vote to cut the aforementioned FedFunds rate from the current 2.25%-2.50% target range down to that of 2.00%-2.25%. Not news, really, given that ’tis been long priced into the FedFundsFutures. ‘Course, much shall be made ado over the FOMC Statement and Powell’s presser. As well, 18 metrics are due to work into the path of the Econ Baro, so keep abreast of that via the website.
Those events noted, “Let’s get ready to rollover!” is Gold’s clarion cry as trading volume this coming week shall move from the August contract (presently priced at 1418) into that for December (presently priced at 1432): that’s 14 full points very of bullish “contango”, the most we’ve seen for any Aug/Dec rollover since at least as far back as 2001, the inference being that there is a willingness to lock in paying today $14/oz. over Gold’s present price rather than wait to buy come December, (i.e. when one may then be obligated to purchase Gold such as to make delivery of it). But then again, why deliver your Gold when ’twill seek a still higher road?