Are Commodities About to Hijack Goldilocks?

in market •  7 years ago 


In this report I cover the early market action from London on Tuesday, May 22nd, 2018. I look briefly at precious metals, the stock market, the dollar and interest rates. Today I also focus on the charts and technical analysis as I look at various charts raging from the gold/silver ratio to the CRB Index.

The gold/silver ratio chart is pointing to a possible general move higher in the precious metals at this ratio actually topped earlier this year and now with silver out performing gold it has started to drop. Historically precious metals bull markets have corresponded with a drop in the ratio.

The other very interesting chart I looked at is that of the CRB (commodity) index and I note that we are actually breaking out technically as WTI crude oil has a great deal of momentum at the moment as it has made a sustained break above the 2016 high of $63.

My conclusion is that we could be on the cusp of a major move higher in the commodities market and also interest rates and that this environment could put a major break on the overall economy and the so called "goldilocks economy' of strong growth and moderate price pressures.


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Thank you for your daily post.
Really you doing very good job.
Thanks for sharing with us

You are welcome @anikearn.

Good morning maneco64, thank you for the update on precious metals and commodities, as always politics will play its part in all this and they have this mid term election business in the us, so i guess we will see the higher inflation and metals really start after this? but we can never be sure? you have way more knowledge than me on the markets my friend and this i thank you for, have great day. :)

Hi Andrew, Have a nice day too and thanks for the support and feedback.

I've heard high commodities are good for the banks who invest in those businesses.

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Most welcome your post @maneco64

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Thanks for sharing

It will be helpfull for everybody

We may see another deflation like in 2008 soon 😳 😂

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You didn't resteem this post.

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Easy call. Commodities will go higher. I don't need a chart for that. As oil goes higher so don't the cost of producing commodities. Precious metals will go higher cause the cost to extract them increases. Agriculture products will go higher for the same reason. Common sense is all you need for that call.

Hello @maneco64

Very informative post. Hope to back such kind of valuable post.