Metals: Metals do not like higher rate talk. I truly do not expect a rate hike before year end  but the Fed likes to throw it out there every now and then just after they release a false jobs report to keep indices moving up knowing they will just adjust the jobs number considerably lower next month. Meanwhile it keeps stock indices moving higher despite doing nothing to help the economy. Once they leave rates alone or bad economic numbers are allowed to come out, they will downplay hike talk and metals will rise again. Not yet.
Gold; October gold made it to $1370 from lows at $1310 and appeared ready to run to $1400-$1425. The much better than expected 255,000 jobs added against expectations of 155,000 put an end to that rise as it was then assumed and uttered by Fed skills that we can again talk about a rate hike in September. Don’t bet the farm on that folks. In fact, don’t even bet a buck. There will be NO economic shocks before November so the narrative can continue as to how great the economy is doing despite continued anemic GDP numbers showing the worst growth in the history of the country. Wait for a test of $1310-$1315 from the current $1340 if considering a by on October gold, risking below $1290.
Silver: September silver fell from highs at $20.80 down to lows at $19.51 so far for the same reasons as gold fell. The area at $19.25 has been very resilient and if it holds again from the current $19.78, a buy may be in order. The first downturn in US stocks may be the catalyst for the Fed to say no hikes are imminent and that may be the queue to buy silver.
Copper: Despite new all time highs for US stock indices September copper could not muster up enough strength to push through 225 and so far has slipped to 21550. There is minor support near 212 but if breached 20750-20800 would be the next target. The range going back to March is 202 down below and 230 up above so no large moves are in order. If we see 208 and that level holds, a buy may offer some upside potential.
Currencies and Financials: I have spoken for months in these pages that the US Fed, Japanese central bankers and European central bankers have been following a plan where each takes turns pushing the higher rates, no higher rates agenda as reflected by their monthly economic reports. The purpose is to keep the status quo where no markets suffer severe price breaks. This has had the desired effect to keep currencies in dependable trading ranges and price action for the past few months confirms that analysis.
British Pound: The Brexit vote in late June sparked a drop from 150 down to lows at 128 in about a week. Futures settled down, rose back to 13500 and since then have waffled between 130 and 135. The bias had started to turn slightly bullish until Britain lowered interest rates last week. This generated an immediate flush from 134 down to 130 where so far futures have steadied. If 130 is taken out we might see 128 but I believe it stays in a range from 130 to 135 so another dip to m130 from the current 13050 may be a buying chance, risking below 12750.
Swiss Franc: For the same reasons discussed in the above commentary I look for the Swiss to stay in a range as well. Last week brought lows at 10050 and highs just below 10400 and we have come back to 10185 presently. Do not look for a buy before 10100 or a sell before 10375 so watch the action for those prices if contemplating a buy or sell.
Japanese Yen: I cannot recommend a buy or sell here as this market has been manipulated more than usual of late. Over 20 years of QE and virtually 0 interest rates has turned the Japanese economy and the Yen into drones. If true prices were seen the Yen would be between 7500 and 8000. That is too low for the US and Europe however as all are trying to achieve total parity between the US, Japan and European currencies. For now a wide range from 9400 to 10000 has been achieved but you can’t trade that range as the sell offs and rallies are 2-3 day 400-500 point affairs based on what the Japanese central bankers say on any particular day.
