Gold pushes onwards. Silver follows suit.

Gold and Silver enjoyed some additional upward momentum in the last few days, on the back of the FED and RBA holding rates. Both metals have since pulled back a touch, but are clearly showing where they would like to be in the coming weeks.

Touching on inflation again today and its relationship to bullion.

The big question asked by many is ‘If Gold pricing expands during inflationary periods, when exactly is the inflationary period?’

And it is a great question. With many economists and consumers alike stating that the current inflationary predicament we’re in, is due to the exorbitant amount of stimulus thrown into our economy since we’ve had ultra-low interest rates and free money from Covid-19 handouts. So why didn’t Gold explode during this period?

We’d argue that precious metals actually expand pricing during the fight against inflation. As monetary controllers attempt to suppress inflation by raising interest rates, they inadvertently increase the price of everything (as the price of money increases). The FED is currently in the middle of the biggest fight against inflation in a long time. Many FED employees may well not remember the last time an attack on inflation was so prolonged and aggressive. 

But here we are.
In the midst of the most aggressive tightening period many have ever seen.
And Bullion seems to be loving the higher interest rates and the ‘medicine’ that the FED is handing out to solve this problem. Higher rates are definitely here for longer. And by extension, so are higher bullion prices.

Enjoy today’s forecasts.

Gold daily chart, with 200MDA

Silver daily chart, with 200MDA

US500, with 200MDA

ASX200, with 200MDA

Gold Futures Technical Analysis

Gold Futures monthly analysis continues to recommend a STRONG BUY with Weekly analysis a STRONG BUY signal.

Technical indicators – Monthly Projections

 Summary for Monthly Forecast: Strong Buy

*Not financial advice, please DYOR prior to any investment decisions you make.