There’s no question that inflation is growing. The only question is whether inflation will be transitory or long lasting. Clearly the Fed believes that inflation is transitory and still not willing to even discuss tapering. I have to believe that behind closed doors, tapering is being discussed. The bond market doesn’t seem to be concerned at this point either. The Fed will wait until inflation growth exceeds expectations. Remember these guys don’t worry about debt when rates are so low. You and I know this spending is not just wickless, it’s dangerous and won’t end well.
Gold is range bound. A close above $1,916 is needed to drive follow through rally back towards $1,950 range. However, a close under $1,875 warns of further correction down to $1,845 to $1,850 range.
Silver is poised for a breakout rally but needs a close above $28.50 to confirm. Platinum seems to have found a short term bottom and has potential for a $100 rally in my opinion, based on other metals and daily chart pattern.