opinion

Gold and silver alert: A pullback, inflation, and the next move

Kitco Media
By CPM Group
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Gold and silver alert: A pullback, inflation, and the next move teaser image

(Kitco Commentary) - In this presentation, Jeffrey Christian of CPM Group puts the latest gold and silver pullback in context after four trading days of gains. By Monday’s close, gold had gained roughly $165 and silver about $3 from November 3. Silver reached the $52–$53 area during the rebound and remained well above the previous week’s lows. Jeffrey explains why CPM still sees signs that gold and silver are building a base.

The presentation then looks at the market’s reaction to the U.S. midterm elections and the economic, financial, and political risks that remain. Jeff discusses how concerns about AI stock valuations are contributing to equity market volatility. He also reviews the rebounds in platinum and palladium. CPM is more cautious about those two metals given weaker fundamentals and investment demand, although both could participate in a broader precious metals rally.

Jeff then reviews the October U.S. Consumer Price Index, which rose 0.4% from the previous month after a 0.6% increase in September. He also discusses the decline in oil prices and what the midterm election results mean for the war in Iran.

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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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goldsilverOctober U.S. Consumer Price IndexJeffrey ChristianU.S. midterm elections
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.