New Banking Crisis Looms, Dangerous Enablers Rewarded

Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason.

As new inflation data pushes the Fed toward continuing with rate hikes, precious metals markets are struggling to make headway.

On Thursday, the government released Consumer Price Index data for September. The so-called core CPI, which excludes food and energy, increased 6.6% from a year ago. That’s the highest core inflation reading since 1982.

Although prices at the pump have eased since the summer peak, other inflation components continue to rise. Housing, food, and medical care are currently among the biggest contributors to rising consumer prices.

For the time being, though, gold and silver markets are showing a stronger correlation to expectations for further interest rate hikes by the Federal Reserve. Metals markets may not be able to get any sustained traction on the upside until investors are convinced that Jerome Powell and company are ready to pivot away from tightening.

As of this Friday recording, gold is trading at $1,650 an ounce and is down 4.3% for the week. Silver is off about $2 an ounce or 10.0% now since last Friday’s close to come in at $18.34 an ounce. The platinum market shows a weekly decline of 3.0% to trade at $903. And finally, palladium prices check in at $2,058 per ounce down a healthy 9.6% on the week.

In other news, former Fed chairman Ben Bernanke was awarded the Nobel Prize in Economics. Yes, you heard that right. The same man who earned the nickname “Helicopter Ben” for his policies of dropping bailout cash into the financial system is now being officially crowned an economic genius by the Norway-based globalist organization.