A Lonely Bull Or...?

Fundamentally speaking, it's a good sign that gold prices were trimmed only a bit today. Even better - silver kept rising.

It means there is faith in the precious metals and traders and investors are trying to clarify whether there is a longer-term bull charging or if, as we say in today's title, it is a lonely little bull.

Yes, there is Iraq. Yes, there is the unsettledness in Ukraine, but our analytical emphasis should be on what low interest rates will mean if they continue into 2015. Many questions arise.

Will low rates virtually guarantee hotter inflation?

Will the low rates simply encourage more and more money to flood the equities markets? What will bond prices and yields do as the low interest rates continue?

We already know that the U.S. is keeping the rates low in order to shadow the E.U. and Japan, so they do not get an advantage on exports. However, the U.S. will also find that its dollar total on imports will rise.

Manufacturing has been a bright spot for the United States, and it is due as much to innovation and cost cutting as it is to low interest rates. American-made products - except for the reprehensible recall problems and cover ups in the auto industry - are gaining a reputation for quality second only to Germany's.

Of course, today's slight consolidation was not unexpected. It was even more predictable given that today is Friday and it is summer vacation/long weekend time in New York. No one wants to be uncovered... except those who are real believers that we are on the verge of a bull run.

Judging by the 0.4% downtick - right around $5.00 - there is a lot of faith out there.

Silver is up more than half a percent, brushing against the $21.00 mark. It seems everyone wants in on the action.

But silver is also responding to industrial demand as manufacturing growth keeps accelerating just about everywhere.

Inflation... what, me worry? Not when gold and silver are around.

As always, wishing you good trading,