Midweek Precious Metals Update – E18

In this 18th episode of the Mid-Week Precious Metals Market Update, Tom Cloud discusses some of the technicals and fundamentals that are impacting gold and silver prices, with exclusive info for FTM Insiders.

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Audio Transcript Below

This is Tom Cloud with the Midweek Precious Metals Market Update.

First of all, and most importantly, tomorrow morning, on Thursday, European central banks will meet to discuss the interest rates and the expectation, what everybody believes, is that they will cut rates and try to stimulate their economy. This would, on the short term, weaken the Euro. The same thing the US has been doing as we watched the dollar drop from $86 all the way down to $80. So, you could see the US dollar actually strengthen on Thursday, and put a little more added pressure on the metals.

But, on Thursday afternoon in the US, we have the third quarter Gross Domestic Product numbers coming out, and then on Friday, we have the US non-farm payroll employment data coming out for October. Both of these figures are believed to be extremely weak in some cases, and that would be very positive, that there would be no tapering further down the road. That would be very bullish for metals.

So, as you listen to this, you will be able to look and see what actually happened, if metals were pressured down on Thursday, and then came back up on Thursday afternoon and Friday, which is what we actually expect to happen.

The key things to keep our eyes on are what these central banks and Fed bank chairmen and presidents of certain branches are saying. Every time one of them opens their mouth, more and more they’re talking about not even looking at tapering until sometime in March or later. And, once again, you know as we’ve said it many times, if they were to taper from $85 billion a month buying mortgage backed securities, and went to $75 billion a month, it would be like you cutting your household spending $38.20 for the month. That’s how non-important it is, and there’s nothing good about cutting from $85 billion to $75 billion when you have somewhere between a $17 trillion and $20 trillion debt.

So, we think all of this is coming to a head, and we continue to hear, out of Singapore and Europe, that in the first quarter next year, we should see some very large moves in the metals. We’re seeing people already predicting that 2014 will be the best year of the 13 years that this bull market has gone on for gold. It may not be the best for silver because silver went up 92% in 2010, but you could see another 40% plus year.

So, everything is setting up because we know until the 14th of February, Obama‘s got open spending, until the debt ceiling really has to be addressed. Remember, when we get to the first of the year, we go into an election year, and then things will actually change. So, we’re looking for no cut in quantitative easing anytime in the near future, no matter what they say, and we’re actually looking for more quantitative easing. We’re also looking for a tremendous amount of printing before February 14th, as this president will try to get a bumper going into the discussions with the Republicans about the debt ceiling in February.

So, everything is setting up, even though we’ve had the first down year in gold in this 13 year bull market, that’s 12 straight years up. This year is down, and the odds are it’ll probably finish down unless it has a huge rally the last 7 weeks of the year. Either way, we’re looking for a monster year in 2014.

If you need to talk to me, you can reach me at 800-247-2812.

With this week’s midweek precious metals market update, this is Tom Cloud signing out.

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