Here’s our weekly report on the price moves of precious metals for April 12.
Let’s take a look at where precious metals stand from what we reported a week ago.
The gold price is at $2,335. It’s up about 1.5%, but it is actually down over the last couple days, peaking out at around $2,365. So it’s been a big run up for gold over the last week.
The price of silver is at $27.92, up about 2.7% with a peak at around $28.73. Silver did break above that $28 mark pretty strongly.
The price of platinum is at $977, up 3.2% since last week. Platinum broke a thousand, and it peaked out at $1,002.
And the price of palladium is at $1,096 currently, but it peaked at $1,128 or 3.3%.
Looking at the broader markets for comparison, the S&P 500 is currently at $5,161 down just under 1% from last week.
And finally, the dollar is performing incredibly well, back up over $105 peaking right now. The dollar was actually down over the last week until earlier today, up about just under 1% almost entirely today.
Why is the price of gold higher?
If the dollar is increasing, the price of gold will tend to decrease. In this case, gold kept rising while the dollar increased ahead of news from the Fed about when they would start cutting interest rates.
Inflation is higher than expected
The March CPI report came out with an increase of 0.4% again, and 3.8% annualized increase. They expected annualized CPI to be 3.7, so the inflation rate is still higher than the Fed target of 2%.
We know that life has become much more expensive. The fact that there won’t be a rate cut in June is most likely negative for the real estate market.
Fed Rate Cuts Off The Table
The chance of an interest rate cut in June went from 85% down to 15%, so the market reacted. What was projected to be six rate cuts for 2024 down to maybe two rate cuts for this year.
Silver is Strong: Gold to Silver Ratio
If you look at the gold to silver ratio, it has declined further down to 83 ounces of silver to one ounce of gold. Silver has broken above resistance of $28 per ounce, and we predict that it will continue to stay strong.
Now is the time to get in touch with your advisor and ask about our ratio trading strategy for gold and silver.
Are we on the verge of a breakout for precious metals?
Tune into the full episode to get all the details of our team’s analysis.
Prepare yourself with our 2024 Gold Investor Kit.
You can also get in touch with your McAlvany advisor to get personalized strategies for your precious metals investing plan.
