The rally in the U.S. dollar stalled, and that helped to support prices. The DXY index hit 94.83 on May 29th, but ended Friday at 93.55.
Weakness in the dollar can be laid at the feet of a stronger euro. The turmoil in several European nations – which threatens the EU with a slow-motion default on PIGS debt – moved back out of the headlines. For now, currency markets are once again acting as if Europe has been fixed.
The U.S. equity markets shrugged off rising tensions around trade and some bad news regarding the solvency of Social Security and Medicare.
The Social Security Administration is expected to start paying out more than it collects in 2034. The estimated date of insolvency is much sooner for Medicare – now estimated to be in 2026.
The central planners at the Federal Reserve will be meeting again this week to dictate interest rates. The consensus in the markets is for officials to move rates higher by another quarter percent. Metals markets could well respond the same way as they have following the last few hikes and rally strongly.
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