Fresh from the options expiry of gold and silver contracts, gold and silver continue to be under pressured in the absence of the arbitrage form the Shanghai Gold Exchange. Chinese markets are closed for one week holiday (Golden Week) and as such the bullion banks will have a field day pushing the price of precious metals lower.
The saving factor could be the jobs report which could report a jobs growth below expectations given the poor manufacturing an services data of late. On top of that construction sending continues to trend lower.
Today Zerohedge reported that the US closed its fiscal year with a US$1.4T debt. News like that should bring down the US$ but it seems to continue trending higher due to move to safe haven asset like Treasuries. However, the US could already be in recession and the next major move by the Fed could be another QE. JP Morgan and Larry Summers are backing the Fed's plan to buy stocks if the US faces another crisis.This means that there will be more money printing. In such a scenario, the value of the US$ will fall and boost the precious metals.
If you are long precious metals and miners, this week would be ideal to collect some units just before the Chinese come back from their holidays to buy more gold and silver next week.
I would meanwhile expect the situation at Deutsche bank to worsen.
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