Welcome back to our weekly precious metals market update, where we provide you with a comprehensive overview of the performance of gold, silver, platinum, and palladium. Whether you are a seasoned investor or someone considering precious metals as an investment option, this update will equip you with valuable insights into the recent performance of these timeless assets.
Gold opened the week at $1,833.00 and closed the week at $1,933.00. As seasoned investors know, when things get volatile in the economy or geopolitically, Gold gains momentum. Last week Gold responded to both catalysts. The entire world is looking to the Middle East and waits for the answer Israel has to the attack by Hamas.
Then the reaction of the rest of the Muslim world on the retaliation. Current geopolitical tensions are the highest since World War II. The next weeks will be a chess match at the highest levels with consequences all the way to un-imaginable.
Then the Bureau of Labor and Statistics released the Consumer Price Index for September which showed that the Federal Reserve’s aggressive interest rate hikes have only brought inflation year over year down to 3.7% or almost twice the number they hoped crashing the real estate market would achieve.
The report did offer some good news, as long as you do not eat, drive a car, get sick, or use electricity to keep cool or warm, there really is not a problem.
Silver matched Gold’s solid performance with a 5% weekly gain itself. Opening trading at $21.60 per ounce and closing the week at $22.72, Silver erased fourteen days of losses. Silver is providing the same safety that her sister Gold does, only to a different segment of the population.
The shiny metal has performed on its own for over a year now after shaking loose from the coat tails of its big sister Gold. Many analysts believe that there is more headroom in Silver than Gold.
Either way, as long as the news continues to dire for the U.S. Economy and the rest of the world teeters on the brink of World War III, it is only a matter of time before the equity markets start to consider the implications of a perfect storm brewing.
Platinum and Palladium sat this rally out. Platinum opened at $881.00 and closed at $887.00 while Palladium fared slightly worse starting the week at $1,161.00 and finishing at $1,151.00.
The Platinum family of metals will remain in this tight trading range until there is some news on the horizon about a Global Recovery in manufacturing.
Outlook and Conclusion
Trouble in the bond market with yields reaching their highest levels in two decades. Raising interest rates has put Banks in because of bond values. The housing market is all but dead. Construction starts are plummeting. There is fore shocks in the Commercial Real Estate market.
Inflation has syphoned off disposable income from the middle class as credit card purchases fell 3% in September. Credit limits reached? Now throw in a crisis developing in the Middle East with oil producing nations joining the BRICS alliance in de-dollarizing daily and it not hard to realize, there is never a bad time to acquire Gold and Silver. But some times are better than others.
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