Gold Breaks Out, Silver Joins
Recap and market comments
Gold Exits the Cage, Lead By Silver
Good Afternoon. Here is a straight recap with some charts included for good measure.
Contents
Gold Hits New All-Time Highs, Silver Joins In
Event Horizon: BRICS Meeting and U.S. Elections
Fed's Cut and Western Seasonality
Today’s Catalyst: The PPI Data
Bullion Banks on Edge
Looking Ahead
Gold Hits New All-Time Highs, Silver Joins In
It’s been a big day for gold and silver. Gold hit new all-time highs, both in print and settlement. It pushed through its previous high from about a month and a half ago, gaining momentum around 8:30 this morning. About an hour in, silver followed suit, leaving its industrial sibling, copper, far behind. Silver seemed to remember its true place today. The main driver behind all this? The 8:30 PPI data came in hot. Normally, this would suggest less chance of a bigger rate cut, possibly even no cut at all. It doesn’t exactly point to the Fed easing interest rates, does it?
Yet, about 30 minutes after that data drop, the market made its move. Gold, and to a lesser extent, silver, picked their direction—and that direction was up. For those who have watched these markets long enough, this was confusing. But as the day went on, it started to make sense. The dollar weakened in an orderly fashion. Bonds? Mixed, offering little guidance. Stocks? Undecided for the first couple of hours before moving up, albeit much more tepidly compared to gold.