by David Chapman
GoldSeek
Correction week. Stocks bounced back, albeit small. The precious metals were mixed on the week. Gold made new all-time highs again and the gold stocks made new 52-week highs but by week’s end most other precious metals were down except for copper. Is it suggesting a temporary top for gold and the precious metals? The Fed as expected held interest rates steady but they did ease up on quantitative tightening. Inflation eased but it is still elevated while there are signs the economy is slowing it is not yet full blown. It does, however, suggest we could be entering a period of stagflation. Irrespective the labour market is not as yet slowing to any great extent. Layoffs and government firings but the weekly claims are relatively steady. Severance packages? Lawsuits slowing things?
The chaos continues south of the border now with attacks against the judiciary raising the possibility of a constitutional crisis. That in turn would most likely be negative for markets and positive for gold. Tourists are turning away from the U.S. thanks to the chaos and a tightening border. Our chart of the week (page 7) centres on gold vs. stock indices.