Precious metals in general have been receiving more of the spot light as of late, with gold hitting all-time highs and silver also inching closer to the grand $50/oz figure. Coverage on Central Banks adding gold month after month to their balance sheets is now the norm, even El Salvador made the news in the gold world. The Central American Central Bank added just under 14,000 troy ounces; the big news isn’t the quantity but that this is their first purchase since 1990! Central banks all over the world are seeing the same thing, geopolitical risk, recession fears, the potential for escalation in the ongoing wars in the middle east and between Russia and Ukraine. It’s no wonder gold and silver are both on a tear that seemingly isn’t stopping anytime soon.
On the gold side of things, we’re up, since our last update, with gold a little more than $10 under all-time highs. Gold is currently trading either side of $3,660 but momentum seems to be building. Gold hit a high at around $3,674 and since then as tested as low $3,612, so a correction has happened, and gold continues to rise. The ball seems to be in the bulls court with the market looking ready to test $3,670 and above, the only hinderance I can see is the Fed not lowering rates on Wednesday. Other than that, this market looks ready to test new all-time highs.
Silver continues to also glimmer in its own light, with it currently sitting up about $1.38 since our last update and trading at levels not seen since 2011. Silver has also had a bit of a pullback trading as low as $41.82 before settling over $42 and now getting closer to $43. Silver will continue to benefit from the rise in gold and just the same, the only downside I can see coming is if there is a surprise from The Fed.