as high interest rates persist and many economists are cutting their forecasts for a rate cut in 2024 to possibly only one in Q4.
Both the miners and silver began showing relative strength to the gold price consolidation after an uptick in the unemployment rate, coupled with negative GDP reports and inflation reported higher than expected. Following a string of U.S inflation reports during the first three months of 2024, which all came in above estimates, concerns are beginning to mount that inflation could prove more difficult to conquer than previously thought, while the U.S. economy is growing at its slowest pace in nearly two years last quarter.
Once a multi-year speculative bubble has ran its course, the Fed has a history of being reactive when it comes to interest rate policy as opposed to proactive. At a time of both historic global debt-to-GDP imbalances as higher-for-longer interest rates are threatening to spark another banking crisis, gold is anticipating the next Fed policy error.
While bullion continues to consolidate recent gains, the increased relative strength of both silver and precious metals stocks is hinting that gold is preparing for a move to recent all-time highs. The silver shortage narrative is gaining attention, with demand consistently outpacing new supply. This imbalance could lead to a significant price adjustment and take silver to its all-time high near $50 sooner than most analysts expect.
from top two gold miners Newmont Corp and Agnico Eagle Mines at the end of April, continued strong miner earnings reports have been showing mining margins quickly accelerating much faster than inflation.ratio moving higher off its possible double-bottom at 0.09 reached in January 2016 when gold was trading just above $1000, then recently in late February just ahead of the gold breakout above $2100.
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