Here’s Why Precious Metal Prices Will Continue To Rise Even With No Fed Rate Cuts

Phil Carr
Updated: Jun 16, 2024, 15:11 GMT+00:00

After an explosive five month run, that saw Precious Metals across the board hit new multi-year and all-time record highs – prices have pulled back this month as trader’s bank windfall profits – ready to capitalize on the markets next big move.

In this article:

Seizing the Golden Age: Lucrative Trading Opportunities in the Macro-Driven Market and Precious Metals

These incredible market moves have presented savvy traders with a series of highly lucrative opportunities to capitalize the recent macro-driven rally as well as the huge price reversal that has subsequently followed.

According to GSC Commodity Intelligence – “a new era of macro has begun and it will dominate every narrative of the global economy over the next decade”.

Put another way, macro-opportunities are everywhere and they are here in abundance! For traders, this is news to celebrate, which is why a long list of the world’s most powerful Wall Street banks have dubbed the current economic climate as “The Golden Age of Trading”.

As the famous saying goes, “buy low, sell high” – And that’s exactly the trend that we’re seeing play out right now across the Precious Metals market.

To quote analysts at GSC Commodity Intelligence – “when Precious Metals go on sale, you have to buy them because in this current economic environment prices don’t stay cheap for long.

This comes as no surprise, because once you step back and take a look at the bigger picture, fundamentally, nothing has changed.

Unfolding Macro and Geopolitical Factors Drive Precious Metals Surge in 2024

Despite the near-term volatility, traders still remain ultra-bullish on Precious Metal prices due an ever-growing number of macro and geopolitical factors that are currently unfolding.

These include; persistent geopolitical tensions, sticker-than-expected inflation, growing demand from China as a hedge against economic instability in the world’s second-largest economy, along with rising concerns over ballooning global debt and uncontrollable government borrowing, which currently sits at record $307.4 trillion

And last but definitely not least – the de-dollarization movement, which has seen global central bank Gold purchases exceed 40 million ounces over the last 7 quarters in a row. That’s officially the longest central bank Gold buying spree ever in history.

Data released last month, showed global demand for Precious Metals has never been stronger. That’s quite an achievement, given the fact that the Federal Reserve has not cut interest rates, so far in 2024 – And may only cut rates once this year.

In a recent note to clients, analysts at GSC Commodity Intelligence continued to double down on their view that “2024 Is The Year of The Metals and any substantial pullbacks should be viewed as buying opportunities because Precious Metal prices rarely stay low for long”.

About the Author

Phil Carrcontributor

Phil Carr is co-founder and the Head of Trading at The Gold & Silver Club, an international Commodities Trading, Research and Data-Intelligence firm.

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