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Gold, silver, and platinum closed above USD $2400, $30, and $1000 per ounce respectively on Friday following a memorable week that saw all metals make significant gains. In fact, silver’s close was its highest in over 10 years.

So far this week, the metals have paused to take a breath. Investors are taking profits, which, for silver investors in particular, have been long-awaited.

The rally was fueled by the emergence of less favorable US economic data and the expectation of a weakening US dollar and interest rate cuts from the Fed. Chairman Powell is now hinting at September for a first cut.

Meanwhile, in China, which has been the main driver of the gold price lately, gold ETFs saw their fifth consecutive monthly inflow in April, adding USD $1.3 billion (17 tons), the largest monthly inflow EVER. China’s central bank, the People’s Bank of China, has announced gold purchases for 18 consecutive months, and their official holdings now stand at 4.9% of total reserves, again, the highest EVER.

We’ve also seen escalations on the geopolitical scene (Gaza, Ukraine, and the death of the Iranian President). Investors should continue to watch these macro trends closely, as the current pause in the gold and silver rally may be short-lived.

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