Precious Metals Weekly Market Update - January 9th 2024

In a year when most commodities experienced negative returns, gold concluded 2023 with a 12.5% gain, marking its best performance since 2020. Silver, however, did not fare as well, ending the year down 1%.

Gold's positive performance can be attributed to a combination of factors, including:

• Continued strong demand from central banks
• Consistent retail demand in key markets, particularly Europe and Asia
• Increased geopolitical risks, including two major wars (Russia/Ukraine and Israel/Hamas)

Looking ahead to 2024, with the likelihood that we've witnessed peak inflation, peak Fed interest rates, and peak US dollar strength, the expected outcome is a more accommodating monetary policy in 2024. This should bode well for both gold and silver, especially in the first half of the year.

Additionally, we anticipate that gold will reach a new record high this year, surpassing the 2023 peak of USD $2135/oz. Analysts project a likely trading range for gold in 2024 of USD $1900-$2200/oz. In a bullish scenario, driven by earlier and faster Fed interest rate cuts, gold could potentially trade as high as $2500/oz, though this is considered less probable.

Silver is expected to rally alongside gold and continues to exhibit more potential upside for several reasons:

• It is relatively cheaper compared to its previous highs.
• It is more volatile in a bullish market.
• Physical availability is tighter relative gold.
• Use cases for silver are more diversified and expanding.

Conservative price predictions for silver in 2024 range from USD $21.50-$30/oz, while bullish scenarios suggest silver could trade as high as USD $35/oz.

All and all, 2024 is setting up nicely for gold and silver investors.

Follow Mark on Twitter @YaxleyYax

***

Mark Yaxley, CEO of Strategic Wealth Preservation (SWP), began his journey in precious metals with Kitco Metals in 2006. Co-founding SWP in 2014, he now guides individual and commercial clients towards their investment goals. Renowned for his 'Inside the Vault' YouTube series, Mark has helped millions gain insights into gold and silver bullion ownership.