Metals Minute 174: FOMC Day vs Gold Advance
The metals are lower this week in anticipation of a 0.25% interest rate increase likely announced at today’s FOMC meeting at 1PM CST. Gold is down 1% to $1,935, silver is also down 1% to $23.81, platinum is down 3% to $1,040, and palladium is down a fraction to $1,736.
From a year ago today, 3/4 are higher, with gold leading the way up 7%, silver 5% higher, platinum up 1%, and palladium off 27%.
Behind the backdrop of record central bank purchases of gold in 2022 (the highest since 1967), we see another trend that seems to be repeating itself. What followed the last episode of similar central bank purchases was a reconfiguration of the world financial system - a “reset” if you will. The dollar became untethered from the value of gold and began to trend downward against the yellow metal.
2/3 of US consumers are living paycheck to paycheck, including over half of those earning $100,000 or more. This is due to higher prices and higher interest rates making debt service more expensive.
Gold is advancing against a declining CPI, which is a pattern seen 5 times previously in the last 53 years - with an average increase of over 60% in the price of gold each time. Got gold and silver?