The major indexes are displaying a red screen and the DOW is down close to 500 points. Meanwhile gold is going sideways around $3.1K. I expect some basing sideways for gold a while before another jump or leg up. Know that around 8:00 AM Gold “gapped” higher. Someone was covering a position, perhaps a short maybe.
Gapping up is a very bullish signal…
Smart Money sold into rally’s earlier in the week…
The PCE came in a bit higher than expected. Inflation is alive and well, and this is before the expected increases in tariffs have any effect which have not trickled into the economy yet.
Pretty much you can expect inflation to worsen sooner or later, and realize that it takes time for this to happen. A delayed effect is normal.
Businesses are in a bit of a fog created by all the uncertainty. Economists are saying that consumers are in good shape. I disagree… there is too much household debt, and households are living on credit…
So the ruin in the future is in play, but there is a delay. Also looks like the FED will have to delay any rate decrease because of fear of fueling inflation. This will deepen and worsen any recession that seems to be looming.
So who makes money in a recession, and a down economy? People with excess capitol; people that have cash stockpiled (Warren Buffet); people who own physical gold (Banksters), and perhaps people who have no or very manageable levels of debt.
Pretty much while debt enslaves the masses, a group of people will really exploit bargain pricing from the wreckage and ruin.
An example is the hedge funds that bought up real estate at bargain prices in 2007-2008, worsening the current housing shortage, and making those homes rentals for big sustained profits.
Rinse-repeat…
Separately there are enough droughts to kinda point towards another “Dust Bowl.” Bad farming practices, clear cutting, and mega farms are recreating history where dust storms are returning. Pretty much we are expanding deserts. New Mexico is in a drought and pretty much a tinder box awaiting future wild fires.
Like China, bad policy is to blame. China is not the only country self-inflicting wounds.
Mucho dumb…
Reminder, “People voted for this…”
Cal