- Following a brief surge above $2,000/oz, the price of gold cooled last week as investors sold off positions and demand for the yellow metal slowed.
- Despite Israel’s continued incursions into Gaza, the war premium associated with the conflict has peaked for the time being. Although the conflict provides geopolitical support for the gold and silver prices, it is no longer acting as a catalyst for higher prices.
- All eyes turned to the core CPI numbers yesterday, which came in flat—below market expectations. This proved very positive for all metal prices yesterday:
- Gold +1%
- Silver +3.5%
- Platinum +2.5%
- Palladium +3.5%
4.What's even more notable is that the precious metals sustained these numbers after their post-number rally. Gains were held nicely into the close, which is constructive.
5. What’s next for gold will continue to depend, in part, on the Fed’s moves heading into 2024. A 'higher for longer outcome' signals flat to lower gold pricing, while lower rates (which is the market expectation) should be associated with much higher floors and ceilings in gold and silver.
Mark Yaxley is the CEO for Strategic Wealth Preservation (SWP) a fully integrated precious metals dealer and global storage provider. Mark began his precious metals career back in 2006 with Kitco Metals and co-founded SWP in the Cayman Islands in 2014. He now spends his time with SWP’s many individual and commercial clients, helping them reach their specific investment goals. His hit YouTube series ‘Inside the Vault’ has helped millions of investors better understand owning gold and silver bullion.