Gold, Silver Flow East As Hedge Funds Short Prices Lower

The Federal Reserve had its latest meeting on Wednesday, and as expected, raised interest rates by 75 basis points. Which was followed by a brief spike up in gold and silver, before an even bigger plunge lower.

Yet as the market digests the latest tea leaves out of the Fed and tries to extrapolate what it might do next, the underlying conditions in the precious metals markets leave a muddied picture of where gold and silver are headed.

So in today's show, Dave Kranzler of Investment Research Dynamics talks about the positioning in the metals market, where the hedge funds continue to sell paper gold and silver, while the banks have covered their shorts, and the flow of physical gold and silver continues to head east.

Which sets up an interesting dynamic, in that especially when the Fed begins to more overtly indicate a pause in its rate hiking cycle, there will need to be a lot of covering by the hedge funds. Especially if and when the dollar index begins to head back lower.

It's not the easiest of times in these markets, and there's perhaps more uncertainty in the economy than most have seen in their lifetimes. But to find out what conclusions can be drawn from where everything currently stands, click to watch this video now!

Arcadia Economics

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