Here’s our weekly report on the price moves of precious metals for May 1. There’s volatility in the markets after the FOMC release and remarks from Jerome Powell.
As of this recording, here is where precious metals stand:
The gold price is now at $2,320. It’s up about $5 from a week ago.
The silver price is at $26.75, down just under 2% from a week ago.
The other two white metals are also on the move.
The platinum price is at $970, up over 5% since last week.
And the price of palladium is at $949, down about 5% from a week ago.
The S&P 500 is at 5,018, down about 1% from last week.
The dollar is sitting at around $105, flat this week sitting.
Markets Give Back Gains After Powell’s Remarks
The markets rallied temporarily as Chairman Powell ruled out an interest rate hike in the near term. Powell expressed little concern about lower-than-expected CPI and higher-than-expected consumer spending — which are signs of stagflation.
“I don’t see the stag or the flation,” said Powell. But he also noted that the economy had not made any further progress toward the goal of 2% rate of inflation.
Watching The Federal Debt Shell Game
Janet Yellen issued $700 billion in new debt in the fourth quarter of 2023. That’s up 60%, and it’s increased 600% since 2008. The problem is that everything depends on the illusion that every penny of federal debt is going to be repaid in full with interest. At some point, it won’t be possible to pay back all of the debt plus interest on it.
What’s most concerning is that if Treasuries crash, the banking and pension systems fail, and hundreds of corporations go into default, it would break the payment system.
Should you buy gold and silver now?
Looking at the Fibonacci retracement levels, gold and silver look like they might be in support range. This means that there could be more room to take off, especially amid uncertainty around interest rate movements.
Listen to the full episode to get all the details of our team’s analysis.
Low US demand for gold is a buying opportunity
China is still on a gold buying frenzy. But low demand in the US means lower premiums for American buyers. Get in touch with your McAlvany advisor to get personalized strategies for your precious metals investing plan.
