Gold Breaks $2500/oz

Gold has cleared an important psychological barrier of $2,500 per ounce and is currently trading at $2,533 per ounce at the time of writing. Silver is beginning to recover some of its recently lost ground, trading at $29.95 per ounce. Both metals appear to have attracted renewed demand based on mixed U.S. data published last week.

Last Friday's U.S. home sales numbers showed a 5% decline both month-over-month and year-over-year. The market is increasingly anticipating a forthcoming Fed rate cut in September, and any news suggesting a 50 basis point cut instead of 25 basis points would support gold and silver prices.

Geopolitical risks, including tensions involving Iran, Israel, and Gaza, persist. Ukraine continues to report progress with its recent incursions into Russian territory, indicating that the conflict is far from over.

Fed Chairman Powell’s speech this week at Jackson Hole will be closely watched by all market participants and is expected to provide clarity.

 As exciting as these record gold prices are, be prepared for potential dips as new information emerges.

Sources: MKS PAMP

***

Follow Mark on Twitter @YaxleyYax