The spot price of Palladium has blown past the spot price of Gold reaching an all-time high in spot at $1,255. Supply concerns still dominate the marketplace attracting more Hedge Fund interest in this small but active market.
Currently, the Palladium market continues to be in a steep backwardation as the current EFP is quoted minus 60 minus 45. Meaning that the price of spot Palladium is trading anywhere from 45 dollars to 60 dollars over the most active futures month on the Exchange, which is March.
The price of Gold under a little pressure this morning mainly due to some profit taking and a need to liquidate some Gold holdings to cover margin calls in the Equity arena.
average of nine to fifteen months before a recession could occur with the average signal time to be 12 months.
The markets perceive this as a yellow caution sign and doesn’t necessarily mean a recession is imminent. These indicators create strong bear markets in stocks usually a year before a recession develops.
If the yield curve does flatten or invert the Fed has a year to prepare, but in the stock market the initial reaction will be more profound.
Hence to sell off yesterday in the Equity market.
Months ago we shared in “The Market Gage” the consequences of an inverted yield curve and the expected impact in the Equity markets and how we expect it will influence the price of Gold, We are now seeing that develop.
In the end the market will indicate what’s coming down the pike.