Gold Rallies to a record weekly close. Along with rallying crude oil may be a signal for something. The economy appears to be slowing down. When does this turn into “something visibly bad”? Plus Dave’s usual weekly round of the news that actually matters.
by Dave Fairtex
Chris Martenson’s Peak Prosperity
[…] It was a mixed bag this week in the reports I follow; however there were three reports I don’t typically watch, but they all were released at 10 am Friday, and this coincided with the start of a strong rally in PM (gold, silver, the miners). Was it a “cause” of the rally? I’m not sure.
#1: ISM Manufacturing (expected 49.5, actual 47.8), #2: Consumer Sentiment (expected 79.6, actual 76.9), #3: Construction Spending (expected 0.2%, actual -0.2%). All these reports showed bad news; they all said things were worse than expected, and they all pointed at contraction. That lined up with the Durable Goods (new orders) report, which hints at contraction in the near term.
But to confuse matters, PCE services (less energy/housing) saw a huge spike (7.8% annualized), which Wolf tells us will send the Fed into a tizzy.