The Korelin Economics Report, Released on 8/3/22

Jordan Roy-Byrne, Founder and Editor of The Daily Gold, joins us for a discussion on what key macro factors or trends he is watching to inform Fed policy, and how that create an environment where the precious metals will be able to diverge from the broad US equites, and begin a true secular bull market in the PMs. Overall Jordan is not that encouraged by the relief rally we’ve seen in most markets, especially in light of a weakening economic backdrop; but we’ll have more clarity in the next 2 months about if the markets top out at resistance and roll over to start the next leg lower. If the markets don’t roll over, and economic data improves, then it will give the Fed more cover to keep hiking longer than some expect.

The conversation then turns the precious metals bigger picture setup, and what conditions would need to be in place for them to truly diverge from the general equities. One of the key takeaways Jordan highlighted, is that if the Fed does start to cut rates again next year, then clearly that would indicate overall weakness in the economy; and so while all market may initially get a bump, this would still be longer term bearish for general stock markets and bullish for gold, silver, and the mining stocks. We wrap up by getting Jordan’s technical thoughts on the rally we saw in gold in July, and the bullish monthly hammer candle, but he is less optimistic that it resolved in a way that will lead to another sustainable move higher in the medium term.

Jordan Roy-Byrne, CMT is a Chartered Market Technician and member of the Market Technicians Association.. He is the publisher and editor of TheDailyGold Premium, a publication which emphasizes market timing and stock selection for the sophisticated investor, as well as TheDailyGold Global, an add-on service for subscribers which covers global capital markets.

  gold, Jordan Roy-Byrne, precious metals, silver