Gold and silver prices surged last week and overnight as currencies and metals rallied. Inflation continues to keep rates high.

The dollar is losing ground, with the euro climbing above 1.09. However, caution is advised as the Plunge Protection Team (PPT) may intervene to reverse the dollar’s decline.

Gold rose from $2,131 to $2,178, while silver increased from $23.83 to $24.26 during the same period. Short positions are suffering losses, but there’s concern about potential engineered takedowns by paper traders.

Oil prices remain range-bound around $77-78, but expectations for a rise persist. Powell’s recent statements have impacted bond yields, which dropped to 4.08% on the 10-year Treasury.

In overnight trading, the dollar faced more selling pressure, while gold and silver saw slight profit-taking. Despite this, their upward momentum remains strong.

In other news, US consumer borrowing increased in January, raising questions about consumer debt levels. Rising costs, especially in areas like education and healthcare, pose challenges to households.

The Federal Reserve’s financial report revealed significant government debt financing, raising concerns about the sustainability of current fiscal policies.

The US economy is facing uncertainties, with questionable job creation figures and growing national debt. The pace of debt accumulation suggests a troubling trajectory with potential economic consequences.

Overall, market indicators show a complex economic landscape with various factors influencing currencies, metals, and other assets. Investors should remain vigilant amid ongoing developments.

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