Investors are anticipating at least a 25 basis point rate cut this week, if not 50 pushing the dollar lower. The emergency rate cut of 75 basis points last week has done little to calm the financial markets, as paper assets continue to get clobbered.
There continues to be problems with South African gold and platinum production due to energy problems. This is putting a strain on an already slowing supply.
We will be watching what the President says this evening regarding the economy in his State of the Union Address as well as what the Fed does tomorrow. Both should do little to help the dollar - boosting the price of gold even higher.
We are also in the middle of 2007 earnings reporting. This should shed even more light on consumer slow down and the health of the US economy.
Donald W. Doyle, Jr.,
Chairman and CEO
David Beahm,
Vice Pres. and Director of Marketing and Economic Research
