Gold/Silver: A Bottom In Platinum, Silver, & Copper? What To Watch!

Overnight, the precious metals are higher after Tuesday’s relief rally and yesterday’s follow-through. 

Futures found support from Tuesday’s softer-than-expected retail sales figures. Core retail sales month over month came in at -0.1 % versus a forecast of 0.2%, and headline retail sales also missed expectations by 0.1% versus 0.3%. 

If you watched Tuesday’s metals minute, I highlighted that the weakness in gold would most likely reverse, and we could see positive action with a weaker retail sales number. Why? Simply put, weak consumers equates to weak retail sales equate to weak GDP, which equals a weak economy and the consumer accounts for 2/3 of the economy which puts two interest rate cuts back in the mix. 

What am I watching?

The Bottoming process in Platinum, Silver, Copper – In that order of strength

Despite recent inflation slowdowns, we anticipate a new era where the consistent demand for raw commodities triggers temporary supply disruptions, potentially leading to significant returns for investors in tangible assets. While Crude Oil offers the broadest inflation protection and Gold protects against stagflation (rising inflation with declining economic growth ), Industrial Metals, such as Copper, provide a perfect mix in this new green energy era. Having the right mix of commodities in a diversified portfolio can help offer protection against a wide range of uncertainties. 

Economic Data

The economic calendar is relatively quiet, and two Fed officials have been set to speak with Thomas Barkin and Neel Kashkari.

Keep an eye on jobless Claims – Expectations are for 235,000 vs last week’s 242,000

Tomorrow – Flash PMI and Services PMI

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