Personal Spending Expected to Slow Down, not a Buyer of Crude Now

Employment Cost Index numbers came out for 1Q22, with wages up 1.20% Q/Q. Wage increase is a lot to businesses and so is inflation, says Phil Streible. He says if businesses were able to pass on those extra costs to consumers, they are better able to weather this higher inflation environment, if they didn’t, they need to rethink their business models. Personal spending is up 1.1% M/M, and it will continue to slow down, and consumer discretionary is not one of the recommended areas we want any exposure to, he adds. He discusses how the dollar (/DX) and gold (/GC) are no longer correlated like they were. He is looking for gold to be $1,950 to $1,975 next week. Crude oil (/CL) would have to be around $95 for us to be a buyer. Tune in for the full discussion.