JPM Looks at Rate Cut Effects on Gold, Silver, Copper
Puts Gold at approximately $2600, Silver at $34
Housekeeping: Good Afternoon.
This is what we saw in JPM’s morning Alpha report.
Contents:
Rate Cut Effects
Global Cuts are Coming
JPM Comment on Gold and Silver
Bank adds FCX to long list
Our next guess is, that JPM is getting its internal ducks in a row after Marko Kolanovic left the firm and they will announce their own rate cut scenarios soon.
Special Note: Precious metals historically do well, but industrials (see grid) do not. The upside (also grid) also does not generally kick in until after the first 90 days for Gold.
This lag in effect makes the election, the potential cuts, and Gold’s Buy-Season all intersecting in November. Fireworks potential is large.