"Gold and silver have pushed through their recent trading ranges and now look set to test their recent highs - with gold eyeing record levels and silver targeting prices not seen in years. Both metals hit three-week peaks today, with buyers stepping in despite the current appetite for riskier assets following talk of a $2,000 US stimulus package. The continued demand for precious metals alongside risk assets suggests investors want exposure to both."
"The Federal Reserve's policy stance continues to favour precious metals. The CME FedWatch tool shows traders expect a 64% chance of another quarter-point rate cut at the December 10th Fed meeting. That would be the third straight reduction after cuts in September and October. Several Fed officials are speaking this week, which could give markets a better sense of where interest rates are headed."
Gold and silver have pushed through recent trading ranges and now look set to test recent highs, with gold eyeing record levels and silver targeting multi-year peaks. Both metals hit three-week highs as buyers stepped in despite renewed appetite for riskier assets after talk of a $2,000 US stimulus package. Demand for precious metals alongside risk assets signals investors want exposure to both safe-haven and growth positions. The Federal Reserve's stance favors precious metals; the CME FedWatch tool shows a 64% chance of a quarter-point cut at the December 10 meeting, which would follow September and October reductions. With easy-money expectations and steady physical buying, underlying fundamentals remain supportive and both metals look likely to move higher barring major shifts.
Read at London Business News | Londonlovesbusiness.com
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