Dave Erfle – Market Reactions To CPI, PPI, Geopolitics – Gold Holds Above $2000, But PM Stocks Remain Muted
Dave Erfle, Founder and Editor of the Junior Miner Junky, joins us to discuss how the markets have responded to the CPI and PPI inflation readings, the geopolitical flare ups on Friday in Yemen, along with the technical setup in gold, GDX, GDXJ, and Silver. We start off looking at how the market is pricing in Fed rate cuts for the balance of the year, and Dave points out that it will be more important as to why they actually start cutting rates.
Technically, it is encouraging that gold has continued to hold and put in a number of weekly closes above the $2000 level, but ultimately Dave wants to see a decisive close above $2100 to signal that a true breakout is in order. We wrap up with a wide-ranging discussion on the underperformance of the PM equities to gold, and why it is so important to see silver start getting a speculative bid along with the mining stocks.