The markets are getting clobbered this week with the exception of the US dollar, which hit a 2-month high. Not even the bond market managed to rally even with the stock market selling off and a strong dollar. Gold was down nearly $40 yesterday and silver hit a 7-week low.
One of the big drivers of the sell-off was the perception that the Fed might be done with stimulus. In his podcast, Peter said this notion is wrong — at least in the long-term. But even if the markets were right, the stock market needs Fed stimulus a lot more than gold and silver do.
Peter said he doesn’t think there’s a lot more downside to gold and silver.
I said on Monday I thought we had a little room to fall for some follow-through. But I do expect some significant buying to come in.”
He noted that there is a lot of “hot money” in the markets and some of that has found its way into precious metals.