Return to normality – US economic data exceeded expectations, and the Greenback advanced. Volatility in precious metals is below the madness seen in recent days and president Donald Trump lowered tariffs on India. All are signs of normality. The only standout is that the US government is partially shut down, which means January’s Nonfarm Payrolls (NFP) report will not be released this Friday
Buy the dip? – Markets’ modus operandi for long years has been "buy the dip" after days of sheer madness that went beyond precious metals and into commodities, and even Forex; the mentality of scooping up Stocks and Gold may make a comeback. FOMO (Fear of Missing Out) could outweigh concerns of crashes. Some dips – especially those related to duties – may fail to even occur, as the TACO trade also returns to the fore.
Watch Iran – High-ranking US and Iranian representatives are scheduled to meet in Istanbul on Friday in critical talks related to Tehran's nuclear program. Officials in the Islamic Republic worry that negotiations are a decoy for a premeditated military strike. Trump continues threatening Iran, and contrary to tariffs, backs it up with increased military presence around the shores of the Middle Eastern country. Yet, if this geopolitical risk fails to materialize, “buy the dip” will remain the name of the game. $XRP