

Where are precious metals likely headed from here, then? We can see on the charts below via Deutsche Bank the relationship between the market’s pricing of future Fed rate hikes and the resulting moves in precious metals which move inversely to these expectations.
#MACRO TRADING COMMODITIES PRECIOUS METALS DRIVER#
A big driver then is the relative changes in the cost of money or the real rate of interest (interest rates adjusted for inflation).

And the fundamentals that drive the dollar higher tend to drive them lower. Since they are priced in US dollars they tend to move inversely to the greenback. We can view gold and silver as anti-dollars.If the market price of gold moves a long way from this level, it may indicate a buying or selling opportunity.” Like Ray Dalio has said, “Over the long run, the price of gold approximates the total amount of money in circulation divided by the size of the gold stock.Here a quick rundown on how I think about precious metals. They’re coiling in a tight pattern and look set for an explosive move in one direction or another.īelow is XAU the gold and silver index on a weekly basis. I’ve been keeping a close eye on precious metal stocks. As the name states, I’ll be sharing something daily except for some days when I don’t. Daily Speculations are for me (Alex) to share some quick thoughts on charts/trades I’m looking at, books and articles I find interesting, or maybe just some photos of my dog Mars.
