Early Market Update and a Look at the Yield Curve.

In this report I cover the early market action from London on Monday, May 14th, 2018. I look at the precious metals, the stock market, the foreign exchange market and the bonds and interest rates. I note that markets have little direction at present even though they are chopping around in the short term.

The focus of my report today is looking at the technical picture for the dow jones industrial index, gold, the U.S. yield curve, the dollar, the gold price in sterling (xaugbp) and the gold silver ratio. I note that the U.S. yield curve ( 2yr vs 10yr) has flattened in the last twelve months and how that could be a negative sign for credit growth.

My conclusions are that we will continue to see longer term U.S. interest rates go higher and I also note that the gold silver ratio is pointing to the out performance of the silver price versus gold and also a general rise in the prices of the precious metals.