opinion

Gold and silver WARNING: Why prices could swing hard before moving higher

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By CPM Group
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In this presentation, Jeffrey Christian of CPM Group provides a precious metals update focused on the gold price outlook, silver market volatility, Federal Reserve interest rates, inflation, CPI, PPI, and the September FOMC meeting.

CPM Group expects gold and silver to remain highly volatile over the next two weeks as financial markets repeatedly reassess whether the Fed will raise rates.

Jeff explains why the next CPI and PPI reports could create sharp swings in gold, silver, currencies, bonds, and stocks. Softer inflation data could reduce expectations for another rate increase and support precious metals. Stronger inflation readings could revive expectations for a quarter-point increase. Investors however, should be less focused on the next Fed decision and more focused on larger factors affecting it.

Those broader factors include persistent inflation, large fiscal deficits, rising debt, political uncertainty, and ongoing global risks.

CPM Group still expects gold and silver prices to rise over the next several months, even if the next two weeks remain choppy.

The presentation also covers platinum and palladium, the U.S. economy, financial markets, the dollar, and Treasury markets.

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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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September FOMC meetingCPIPPIgoldsilverU.S. economyFinancial marketsTreasury MarketsJeffrey Christian
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.