Precious metals were strong yesterday after another post from President Trump on Truth Social claiming US prices are “WAY DOWN” with virtually no inflation. It wasn’t fresh rhetoric from left field from the ultra-dovish President who wants interest rates lower. However, it was enough to drive precious metals higher, illustrating the path of least resistance for gold and silver remains up. Both metals have more than doubled over the past three years, propelled by mounting risks in geopolitics, business, and global trade:
- Silver surged over 2% posting its highest level since September 2011.
- Gold popped more than $US40, leaving it within 1% of registering new all-time highs.
We can see silver extending its upside move, which seems to be gaining momentum.
MM has been calling a break above $US3500 by gold this side of Christmas, and after yesterday’s Trump-inspired move, new highs are looking imminent. But as we’ve repeatedly said, “long gold” is a crowded trade, and we wouldn’t chase such a move in the short term, not ruling out another $US400-500 correction courtesy of profit-taking.
- We can see gold popping above $US3500, but we are still likely to fade such a move instead of buying the breakout.
Initially this morning we’ve quickly updated our view on the top two performing gold stocks on Monday, a great time for the gold buffs:
