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| Inflation was up 20% so a proportional move in the metals doesn’t seem out of line. That puts Gold in the $2500 range.
My take is that the PM market anticipated this move in advance of the interest rate cuts that have the effect of weakening the dollar.
Unless there is another catalyst beyond interest rates going lower I’d be cautious about loading up on PM’s at these levels. There’s already a lot of air between price and support levels. We’ll likely back test support levels at some point.
There has always been someone saying that Gold is going to $10000 and Silver to $100. Once buyer’s powder dries up the Central Banks will pounce. | |
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Dollar
