Again

Despite a Fed rate hike last week, not to mention another one in play by the end of this calendar year, it is quite clear that we have a White House not only hell-bent on downplaying inflation but also outright flaming the fire to run it hotter than ever. 

As we have noted before, here and with Members, gold often flourishes in a scenario where monetary/fiscal policies are far more dovish than they ought to be in the context of entrenched inflation (See Also: 1970s).

Here, a baby 25bps rate hike is a nice gesture from Kevin Warsh and his band of money printers, but also insufficient for what is required to crush inflation amid the erroneous fiscal policies from the federal government. Simply put, disinflation is not going to cut it at this point: We need outright deflation, meaning actual lower prices rather than a mere slowing of the rate of inflation. 

In terms of gold, as well the metals and miners as a whole, our tell continues to be the risk-on nature of the junior gold and silver miners, respectively below on their daily chart ETFs (GDXJ and SILJ). You can plainly see the outperformance to the gold and silver metal themselves today, as they threaten upside breakout from the multi-week falling channel consolidation patterns. When market players are comfortable taking on the riskiest part of an asset class off a pullback, it can be seen as a bullish sign for the metals going forward with more follow-through.