Gold prices have seen a resurgence, with analysts at TDS noting that they are nearly back to the post-CPI highs seen recently. This increase in Gold prices comes as a result of back-to-back weaker-than-expected inflation prints and the less hawkish details of the Federal Reserve meeting. Market sentiment has shifted towards the Yellow Metal, with investors now pricing in two cuts by the end of the year. However, there is a possibility of some modest selling if Gold prices fall below $2,330 per ounce. This back-and-forth price action indicates uncertainty in the market.
On the other hand, Silver prices have been facing a downward trend. The recent capitulation in Silver prices has just narrowly avoided Commodity Trading Advisor selling levels, but the move has added more downside momentum to the model. The first selling trigger for Silver is at $29.14 per ounce. This downward trend in Silver prices is in contrast to the rising Gold prices, indicating a divergence between the two precious metals. Investors may need to closely monitor both Gold and Silver prices to make informed decisions.
Overall, the current market trends suggest that Gold is on the rise while Silver faces a leg down. The factors contributing to the increase in Gold prices include weaker-than-expected inflation prints and the less hawkish details of the Federal Reserve meeting. Investors are now pricing in two cuts by the end of the year, leading to increased appetite for Gold. However, there is still some uncertainty in the market, as seen in the back-and-forth price action of Gold. On the other hand, Silver prices have experienced a capitulation, with the first selling trigger at $29.14 per ounce, indicating a downward trend for the precious metal.
In conclusion, while Gold prices are seeing a resurgence, Silver prices are facing a downward trend. The market sentiment towards Gold has increased due to factors such as weaker-than-expected inflation prints and the less hawkish details of the Federal Reserve meeting. Investors are now pricing in two cuts by the end of the year, leading to a rise in Gold prices. On the other hand, Silver prices have experienced a capitulation, adding more downside momentum to the model. It is important for investors to closely monitor both Gold and Silver prices to make informed decisions in the current market environment.
