 Good morning, ladies and gentlemen. Welcome to your daily news update from your Frankfurt office of CMC markets We had in gold a break of a technical uptrend last week before the day before Thanksgiving in the United States on Wednesday They broke the major assist or support line at 1199 US dollars, which means that actually the the the uptrend from a doubt theory perspective Since December of 2015 is interrupted. There is no new downtrend For a new downtrend gold has to go back up and then make lower lows up from that Rising price Channel, but for now there's an interruption of this clear and healthy uptrend Reason for that or reason for weakness in gold is of course the strong US dollar Markets clearly expect that the Fed of a reserve will hike rates in December and that has increased the Yeah, all the speculation go in towards that Fed meeting Rising rates are one of the reactions the markets are showing US Treasury notes are at 2.4 percent Yield for the 10-year horizon for 10-year duration so that is a big jump in rates and if you look at that from a contradictive cycle Perspective then this might mean that one or two years ago or might be three years ago. I think it was 2013 or 2014 was the low in rates for the next 30 years in the United States that doesn't have to Doesn't have or doesn't necessarily have to do with Trump. Trump is just the trigger is just a one of the reasons Why markets are quickly? Waking up to the probability that there might be an increase in inflation coming next year in the United States at least so if you imagine and that is the bullish back door for Gold investors if you imagine that there will be three and a half percent inflation next year in the United States Then there are two options for the investor who is in gold right now or thinks about going long or short and gold If the inflation in the United States goes to three and a half percent There are two options. The first option is that for the Fed of reserve the first option is to hike rates To stem that inflation rise or second option is to tolerate a Temporary overshooting of the inflation target of 2% or even thinking about lifting the inflation target. So Why do they think about actually raising the inflation target because there might be a situation Where inflation is rising stronger than they are able to hike rates because they cannot hike rates endlessly And the rest of the world like the ECB the Bank of Japan are Staying put with their zero interest rate policy the ECB will take years to come out of zero interest rate policy and Quantitative easing measures will take a long time to be tapered down in the eurozone because just the inflation targets are not Reached the economy is too weak in your in the eurozone. So where the federal reserve to hike rates to three and a half percent that would definitely Weak in the economy or cause a recession and it would cause a very much stronger US dollar And that is something the federal reserve has no room to maneuver Strongly towards hiking rates in an environment where the inflation goes up. So probabilities are relatively high that There might be a situation coming in the next year where inflation is Going up stronger than the nominal rates that means that the real rates the real yield might be Going lower or might even go negative and that is a bullish back to for everyone Who is dissatisfied with the current? technical Developments in the price of gold