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Gold and silver ALERT: More downside before another rally?

Kitco Media
By CPM Group
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Gold and silver ALERT: More downside before another rally? teaser image

In this presentation, Jeffrey Christian of CPM Group looks at the gold price outlook, silver support and resistance, platinum and palladium markets, Federal Reserve interest rates, government debt, and recession risks. With gold around $4,350 and silver near $66.60 at the time of recording, he explains why CPM views the recent weakness as a correction within a longer-term precious metals bull market.

Jeff begins by comparing short-term and longer-term gold charts. Prices have declined from their January highs, but CPM believes the broader upward trends remain intact. For silver, Jeffrey discusses resistance near $75 and why CPM expects substantial investor buying should silver prices fall to around or below $55. That buying interest could provide a support level for the metal.

The discussion then turns to platinum and palladium. Jeff reviews their price cycles, the influence of investment demand, and the relationship between physical market tightness and available inventories.

Jeff also puts the Fed’s latest rate increase into historical context and examines the risks associated with government debt. He discusses continued foreign demand for U.S. Treasury securities and why serious fiscal problems do not, by themselves, point to an imminent financial collapse.

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CPM Group

CPM Group is a commodities research, consulting, financialadvisory and commodities management firm providing independent research,analysis and advisory services related to commodities markets, corporate andproject finance, and the financial management of exposure to commodity orientedinvestments.

We started our business in 1986 predicated on the idea that commoditiesresearch and advice is best delivered by independent experts who do not work forbanks, brokers, mining companies, or any other entity that has interests thatcould conflict with the best interests of the clients receiving the research,analysis, and advice.

All of our work is driven by fundamental commodities research and economicanalysis. As we undertake our research into individual commodities markets wegather a tremendous amount of information and develop an enormous body ofextremely high quality, unbiased analysis of the markets and the companies thatare involved with individual commodities. The outputs of our research andanalysis take the form of research reports, specialized and targeted consultingrelated to these markets, financial advisory services ranging from corporate andproject finance structuring to equity introductions, and managing specificcommodities and investment positions for clients.

CPM Group continues to demonstrate the economic value and financial worth ofsuperior research, information, and analysis. Our research is based onmicro-economic analysis of the individual components of each commodity market,wedded with a top-down macro-economic analysis of the global trends affectingthese markets. We apply the results of that analysis to our research,consulting, and advisory services.

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.