Metals Minute 125: PPI & Technical Support for Precious Metals

This morning we have gold and silver flat and trending higher, with platinum and palladium higher from Wednesday’s update. Technical indicators tracking gold and silver seem to have confirmed the recent bottom and bounce higher, and trends seem to match the more subjective reasons why we believe it is a great time to add gold and silver.
 
We are seeing a record gap between the PPI (Producer Price Index) and the CPI (Consumer Price Index), as these metrics are the furthest apart they’ve been in at least 30 years. If PPI were lower, it would indicate that lower prices were on the way. But PPI is higher, which indicates further pricing pressures are in the pipeline that consumers haven’t seen yet.

Agriculture is a concern, with input costs rising for farmers and banks putting new requirements on Dutch farmers to produce less food to obtain loans. Dutch farms are the 2nd largest food exporters worldwide, which is a concern.
 
We also see Americans beginning to shop in Mexico to purchase everyday necessities at significant savings, such as milk, toilet paper, OTC medicines, etc.