Posts tagged 'Precious Metals'

What the impact is likely to be on the gold price is a matter of some dissension among observers – most are either bullish on the gold price (some hugely bullish), or consider that things won’t change at all and the principal price driver will remain rising inflation and potential moves to control it.

It was speculated that the Fed might consider raising interest rates earlier than previous forecasts had specified but still probably not until 2023. 

This week’s FOMC meeting deliberations, outcome and analysis thereof is likely to set gold and silver’s short term price patterns.

The gold price rose by around 7% in May, after a couple of weak months had set the price back well behind earlier expectations.

There are decidedly mixed views on the rate of U.S. inflation or even if it exists sufficiently enough to worry central bank policy making.

CPM Group, which is an analytical metals consultancy and commodities research and management firm, has proven, best analysis of precious metals markets and prices available.

Precious metals prices have been performing strongly over the past few weeks and one of the reasons behind this is the fear that seemingly ever-rising inflation may force the U.S. Federal Reserve to raise interest rates rather sooner than it has so far been indicating.

However, if interest rates continue to be lower than the inflation rate, they are seen as effectively negative, which are, conversely, gold positive.

The past week has indeed been a momentous one here for precious metals.

The latter $1,680 figure is seen as something of a lower resistance level, which proved to be the case on this occasion, with gold bouncing back quite substantially in the final two weekdays leading up to the Good Friday holiday.