Metals Minute 42: Inflation or Deflation?
The trends have continued since last week, with gold and silver higher while platinum and palladium are lower. Gold is up 4/10 to $1,803, silver is up 7/10 to $23.85. Platinum is down 1/10 to $1,006, and palladium is down 8/10 to $2,485.
The reverse has also continued on an annual basis, with gold down 6.5%, and silver down 10%, while platinum is up 8% and palladium up 14%.
The move to gold as an inflation hedge is continuing, with central banks purchasing gold by the ton - 90 tons this spring alone. The same is true of the treasury departments of corporations, including technology company Palantir, that has access to the intelligence resources of the military and various intelligence agencies of the United States.
Technical indicators analyzed for the last 30 years tell us that silver moves higher in September 70% of the time, from the price levels seen at the end of August. We have already seen an upward trend developing the last couple of weeks; the technicians among us believe it will likely continue into next month.
Whether we see inflation or deflation in the days ahead, gold and silver appear prepared to lead us to higher ground.