“The bottom line for investors is that the FED and other central banks have trapped themselves in the morass of negative interest rates and QE without restraint of forethought. IF this theme continues to play out the proof will be in the STEEPENING of the yield curves and further softness in the dollar. The precious metals have begun to breakout of previous ranges. GOLD WAS FIRST AFTER THE JUNE FOMC meeting and last week’s POWELL testimony. Silver has now joined the party on Tuesday as there was an unwind of some very profitable long-held GOLD/SILVER spreads.
Also, pay attention to the Japanese YEN as it has rallied in the face of continued new highs in the SPOOS and other equity markets. That’s not a response to RISK-OFF algos.”