Hi and welcome to finance's do matter my name is Richard and this is our regular weekly Financial update let's get to it well last week the key economic data coming out of the United States was CPI the measure of inflation and ironically the Figures were more or less as expectedA rise of 0.2 percent now one would assume therefore that we would see gold and silver prices rise on the back of that because it does give the impression that inflation is tamed or at least has been prevented from rising further but no we did see a very small blip inThe rise in the price of gold and silver and a little bit of a blip in the equity markets for sure but that was soon corrected so much so that in the end gold prices fell some 29 and closed at 1914 dollars down one half percentAnd silver fell 95 cents and closed at 22.70 a fall of four percent why did this happen simply because the markets took the view that another interest rate rise though now unlikely to happen in September just to remind you the fomc is meeting on the 19th and 20th of SeptemberAnd the general consensus is that rates will not go up however a number of fed Bank presidents have come out already and muted the fact that they do not necessarily think of the tightening is as yet over now much depends on the economic data as and when it comes outAnd the interesting thing is that at this present moment in time there is the view that another quarter percent or 25 basis points could still be on the cards my view is that rage should go up another 25 basis points yes it will harshly affect people's lives especiallyThose with large mortgages or loans but that said the quicker they go up the faster in my opinion they can then come down and all that keeping them at the current level is going to achieve in my view is the whole process s will just be prolongedThat said there will be further CPI and pce another way of measuring inflation data coming out before the 20th of September and that will have more of a bearing and provide more of an indication as to what the FED is going to do now on Wednesday the minutes of the lastFed meeting will be announced and it'll be interesting to see what was said then though I'm not really expecting any great shakes now on Tuesday the day before the fomc minutes we have U.S retail sales and the expectation is that they will rise by 0.4 percent and thatAgain will give us some guidance as to how robust the economy is we did see last week that Consumer Credit was much higher than anticipated so certainly if there is a fueling in the economy it's because people perhaps are still borrowing money now with the CPI figuresComing out for July 0.2 percent this therefore means that the CPI year-over-year figure is 3.2 percent and the core CPI figure is 4.7 it's my estimation from the calculations that I have done that this is not going down fast enough particularly as we have oil prices too above 80 a barrelThis is not fast enough for the FED to achieve its goal of a two percent inflation rate in 24 months time or less so that's why I'm of the opinion we will see another quarter percent rise now the equity markets reflected last week the fact that perhaps these figuresThough they appeared okay were not that great because although the Dow was slightly up we saw that both the NASDAQ and the S P 500 were also down as was the ftse 100 index in the United Kingdom so the equity markets broadly though not shocked were not overly impressed eitherParticularly bear in mind they did go up when the announcement was first made but as in the tradition of the markets you get the emotional activity first and then when people start to really analyze the figures then more rational decision making is adopted so where does thisLeave us moving forward for gold and silver for example well it is my conjecture that gold is essentially going to trade somewhere between 1900 and 2 000 might dip to as low as 1880 over the next week or two and could potentially go to 2020 thoughI doubt that very much I would be more comfortable by saying 1880 to 1980 will be the sort of spread for gold what we cannot discount though is the fact that if it becomes abundantly clear that there will be another rate rise then with the dollar Index well above102 in fact 102.8 just shy of 103. then gold and silver really which has traditionally an inverse relationship to the value of the dollar and going up no time soon maybe a few dollars but nothing significant so I'm putting myself on the line slightly by saying over the next week orTwo although there's some economic data coming out next week and the week after it's pretty much apart from us retail sales it's pretty much sort of shall we say non-descript and it's only when we get well into September will the data really matter so as a result I'm not expecting any majorChange if anything maybe a malaise of precious metal prices because a lot of Traders will be on holiday you will on geopolitical news if there's something that comes out of the ordinary be a spike up or a spike down but generally speaking gold and silver are going to beMarginally lower than they are now potentially gold could go as low as 1800 do I envisage that happening the next two weeks no but it's a possibility though not a probability I would say it'd be pretty well fixed at 1850 though the forecast for next weekIs 1880 to 1980. Silva is going to move more or less between 22 and 24 dollars but if that 22 dollar floor is broken you could see silver dip quite quickly down to 2150 21 and if that's broken then down to twenty dollars but as I've said on our other channelI think twenty dollars is where the floor truly exists for silver in this Paradigm where the level of inflation that we have the amount of money printing that we've carried out the national debt I find it extraordinarily difficult to see silver falling below twenty dollars ever again unless there'sSome incredible find that no one has yet has predicted on the upside 24 25 perhaps at a peak at least for the next month but realistically I'm counting on Silver moving more or less between this 22 and 24 dollar range more towards the bottom than towards the topEquity markets at the moment will Fair mediocre in a mediocre fashion and again no great shakes either way it'll be more exciting though in September what do you think is going to happen to precious metal prices what do you think is going to happen to the equity marketsPlease share your comments below they would be very much appreciated that's all I'm going to cover today I don't want to make this video too long but to say that there will be a number of videos produced during this coming week on the range of topics that you areSubscribers and viewers have asked for so watch out for those meanwhile I'd be grateful if you would give us the thumbs up subscribe and press the Bell sign we had a great holiday the last two weeks but now it's back to work thank you for watching see you soon foreign