RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

To taper or not to taper? When and how much? Does the rate of inflation warrant higher rates? When are we going to stop paying people more to stay home than to go out and work? When will the Delta variant peak? Are we going back to lock downs? Trading gold is not like buying every dip in the S&P. Everybody always says that “the market doesn’t like uncertainty”. Well it seems certain that the Fed is afraid to take away the punch bowl, but at some point, we will have to normalize rates. It would be better for the markets if it were done slowly and incrementally as opposed to sudden and sharp hikes. We have to keep inflation under control. If the Fed lets inflation run away, we will have bigger problems than payer slightly higher rates. We will see how Chairman Powell handles his speech today at the Jackson Hole Symposium. A “virtual” Jackson Hole.

Meanwhile gold trades between $1,810 to $1,780 waiting for some clear direction.

Gold Dec ’21 Daily Chart
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Frank J. Cholly

Senior Market Strategist
Frank is a swap registered trader who brings his clients more than twenty-six years of commodity futures experience. He was a member at the Chicago Board of Trade for 10 years where he filled orders in the grain and financial pits. Frank was also a Lind-Waldock's floor manager for ten years and later joined on as a commodities broker.
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