The SOG (Silver, Oil, and Gold) end the week strong
Are the fireworks finally starting?
Silver is up 1.5% and Gold is up 1.3% today. Both have had a very strong rebound from FOMC pre-meeting trading. Oil is up over 3% today, rounding out the good news for the SOG thesis.
We’ve been waiting a long time for silver and gold to get in on the action oil has seen for the past year. It’s looking increasingly like this is the start of the bull market. Silver is up 12.5% since bottoming below $20 at the end of September.
Similarly gold flirted with $1,700 in late September, but the price floor continues to be raised. The FOMC notes made no mention of a rate hike possibility in 2022. If you follow the Fed’s language (and God bless you if that’s your thing), just the hint of a considering a rate hike in 2022 was seen as a hawkish development. The Fed won’t even go that far.
To make things even more promising, Alan Baerlocher’s report on labor yesterday showed that the Fed is completely misreading the situation (as per usual.) The employment situation is as close to normal as we’ve seen since February 2020.
This all sets up for another upward movement of the government’s inflation measurements. Savvy traders should start to aggressively accumulate SOG. We’re just getting started.