RE: Opening14 Dec 2023 09:08
I suspect the Fed have seen the likely Q1 numbers and they're terrible and flirting with actual deflation which would bankrupt the US in a heartbeat - hence the uber dovish talk from Powell that's sent Gold & Silver flying.
Interestingly, Copper tracked that rise very accurately and Oil has also bounced - if, as I keep saying, Must..Have..Inflation.. then they need to pump the living daylights out of oil/copper/other commods to keep inflation strong.
They also need to kill the Dollar - they need to sell $8 trillion of new debt in 2024 and we believe that buyers are scarce so it's going to be a biblical amount of YCC to suppress rates and stuff that new debt onto the Fed's balance sheet - that's going to send inflation even higher, probably higher than the wave #1 we saw over the last coupe of years.
So far, so 1970s ...
In this scenario, all money turns to big O&G and PM mining plays for the forseeable - FRES not dropping yesterday was a big clue IMO.