On the heels of a report from the Federal Reserve that they don’t expect to lower interest rates in March, gold is up 1% from last week at $2,055. Silver is up 1% at $23.21, platinum moved up 1% to $933, and palladium moved up 2% to $1,027.
From a year ago today, gold is 7% higher, with silver down 2%, platinum down 8%, and palladium off by 38%.
The report on interest rates is not definitive, as a lot can happen in a month. With massive layoffs announced in the banking and shipping industries and instability among regional banks, the Federal Reserve report is only a delay - not a denial, in the upcoming need to lower interest rates.
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Typically, gold moves 6% higher within 30 days after the first interest rate cut in any given cycle. Gold rarely moves in a vacuum. With record demands for silver expected in 2024, silver will likely move higher than gold on a percentage basis.
There is much ado about GDP growth numbers for Q4 ‘23, but the numbers don’t look so rosy when we look under the surface. The growth has come at great cost, with $1 of debt created for every $0.36 of growth.
Debt service costs and downward pressure on wages may require interest rate cuts sooner rather than later, leading to an inevitable rise in gold and silver prices in the months ahead.
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byBill Stack