(Click on image to enlarge)

(Click on image to enlarge)

Gold purchases by everyone from central banks to institutions and ordinary investors have lifted the precious metal in 12 of the past 16 sessions https://t.co/bbCa1NaKyS

— The Wall Street Journal (@WSJ) January 26, 2023

The precious metals have been on fire the last four months and The Wall Street Journal took notice this morning in an article on the front of their “Business & Finance” section. The most popular gold and silver miners ETFs – GDX and SIL – are up about 50% over that span! But why? As a long-time precious metals bull I’m not complaining but it’s been confusing given how hawkish the Fed has been and how hard inflation is rolling over.

Current market expectations for path of the Fed Funds Rate...
-Feb 1, 2023: 25 bps hike to 4.50%-4.75%.
-Mar 22, 2023: 25 bps hike to 4.75%-5.00%.
-Pause.
-Rate cuts start in Nov 2023 and continue throughout 2024 with Fed Funds Rate moving back below 3%. pic.twitter.com/rCvx6uu2cn

— Charlie Bilello (@charliebilello) January 25, 2023

Nevertheless, I think the precious metals could continue steadily higher if the market is right that the Fed is on the verge of a pivot. While I recently cut my precious metals mining ETF positions in half from 30% to 15%, I’m holding onto that position in the event this scenario plays out – which I consider likely.

More By This Author:

INTC: Look Out Below!
KMB’s War For ‘Poop Superiority’, NOC Earnings
COF Confirms Consumer Credit Stress