Market Update

General - US-CPI

Good afternoon

people here would hope for as active communication between our politicians, as the Trump-entourage seems to have had with the Russian intelligence service. I think it´s unbelievable, that his people have been in several communications with these guys. What the should they have to talk about???? Is there anything positive you can talk about with Russian spies???

CPI rises by the fastest since 2012 - up by 2.5% YoY and 0,6% in the Quarter! That´s massive...Yellen is definitely behind the curve! Hard to believe, that gold initially tanked to 1219 US$, before recovering to trade just above yesterdays close, as I am writing. 

The Aussie gold sector unfortunately has been bit boring wonder...the A$ gold price is back to 1600 and has been there for just about 7 weeks now! That´s a healthy price for Australian producers - but without a real move, we will be treating water for some time longer. Unfortunately, I do not see this changing any time soon, as strong resources prices are putting upward pressure on the A$.

Yellen seems to be pretty sure to increase US-rates in March...most probably, this is very much overdue, given the positive economy and rising inflation. Retail sales pretty positive as well...The US$ keeps on strengthening - Yellen calling!

Chinese credit growth has been positively received, as well as  thoughts to potentially curbe coal mines again.

Both parties accepted to have a government-led mediation to try and solve the labor dispute at Escondida. But the way it sounds, the earliest possible meeting time will only be next Friday...that´s a long time to go for the world´s largest copper mine.

Base metal prices are well supported in London today , as well as iron ore.

Rare Earth stocks are starting to move....Lynas trading at the highest since late 2015, GGG since early 2014...Peak Resources moving on small turnover as well. Investors waking up to the fact, that at least currently, you don´t only need lithium, but also cobalt, copper and Rare Earth  for most elctrical cars or their batteries. Cobalt rose again on the LME to the highest price since 2010!

Have a nice evening!