In a prepared speech to the Sacramento Metropolitan Chamber of Commerce today, U.S. Treasury Secretary Janet Yellen warned of the potential for severe economic consequences if the House does not address and raise the debt ceiling.

This week will contain two exceedingly important government reports on the US economy. These two reports will be important in guiding the final decision of the Federal Reserve at the FOMC meeting next week.

The volatility that led to diminished bullish market sentiment for gold has returned as gold futures broke below $2000.This morning in New York traders witnessed a quick and powerful price drop from the open and high at $2016. Today gold traded to a low of $1982.30 and as of 4:45 PM EST gold futures basis the most active June 2023 contract is down $25.80, or -1.27 %, and fixed at $1993.40.

The recent volatility that led to diminished bullish market sentiment for gold has diminished as gold continues to effectively find support at $2000 per ounce and above. Today gold traded to a low of $2002.20, effectively above the current critical support level of $2000. This morning in New York traders witnessed a quick and powerful price surge taking gold to a high of $2024.20.

Recent volatility led to diminished bullish market sentiment for gold causing a price break and taking gold futures to $1980.90 before recovering. This morning in New York traders witnessed a quick and powerful price decline in gold breaking $20 below $2000 and recovering just as quickly as it sold off.

Over the last 10 trading days, gold futures have effectively closed above $2000 per ounce. Although on an intraday basis, gold has moved below $2000 on three occasions, gold prices recovered and closed above $2000 on each instance.

As of 4:25 PM EST gold futures basis the most active June 2023 contract is trading down $8.50 or 0.42% and fixed at $2007.20. In earlier trading market participants actively moved gold below the key psychological level of $2000, taking June gold to its intraday low of $1993.40.

To the Western technical trader chart patterns are a major component used to predict future price movement over time. It is based upon the assumption that the study of historical price movements is a visual representation of market sentiment. Most importantly it is assumed that these patterns will repeat over time and thereby give traders an insight into potential future moves.

In 1913 and 1924 Dutch economists Jacob van Gelderen and Salomon de Wolff speculated the existence of 50 to 60-year cycles in the financial markets.  In 1925 the Soviet economist named Nikolai Dmitriyevich Kondratie speculated that a multi-decade business cycle existed. He called it a “Kondratiev wave”.

Come writers and critics who prophesize with your pen and keep your eyes wide, the chance won’t come again …. Your old road is rapidly aging. Please get out of the new one, …  For the times, they are a-changin' …. Bob Dylan