Precious metals have not gotten much fanfare lately, especially with palladium in a downtrend and platinum and silver stuck in messy ranges. 💤
However, one that continues to pop up on investor and trader radars is gold, which is once again trying to break above $2,000/oz. Below is a chart showing prices stuck in a range for the last 2.5 years, each time failing to sustain a break above resistance. 🔐
With the disinflation trend continuing and rates expected to stay higher for longer, the bullish catalyst many traders are discussing is a possible recession. But as we discussed with the Visa story, the market remains mixed on its recession outlook, as the consensus view is now that the Fed has pulled off a “soft landing.” 🐂
Bears say that gold missed its opportunity to shine when inflation was roaring in 2021 and 2022 and that there’s little reason for investors to seek the perceived safety of gold when the risk-free rate is above 5%. Especially if the economy doesn’t fall into a recession. 🐻
We’ll have to wait and see who is right. But what’s clear is that gold is on people’s radars into year-end as we all wait to see how it handles this $2,000/oz level again. Time will tell… 🤷