Welcome to SurvivalBlog’s Precious Metals Month in Review, presented by Gainesville Coins. Each month we take a look at “the month that was” in precious metals. We cover gold’s performance and the factors that affected gold prices.
What Did Gold Do in March?
Boy, did anyone see this coming? I actually lost count of how many record highs gold hit this month. Gold futures and spot gold both started the month with new all-time highs. $2,095 an ounce for futures, $2,083 for spot.
Futures ended the month $143 higher at $2,238 an ounce, and spot gold gained $150 after finishing at $2,233.
Factors Affecting Gold This Month
STATIC INFLATION
Most economic reports show that inflation isn’t getting higher or lower overall. While this means that the Fed is in no hurry to cut interest rates, there is no need at all for a rate hike.
MELLOW FED
Fed officials say that while they see no immediate need to cut interest rates, they still expect to cut rates three times this year. If we take a June rate cut as a given, a logical course of action would be for the Fed to cut rates every other meeting for the rest of the year. That would be in September and December, dodging the political minefield of a November rate cut.
FOREIGN INSTABILITY
We have wars in Ukraine and Israel, global supply chain disruptions caused by rocket attacks in the Red Sea from pro-Iranian rebels in Yemen, and China teetering on the verge of economic collapse. Toss in superheated inflation in nearly every nation that isn’t in the G7, and gold becomes an attractive safe haven for much of the world.Continue reading“March 2024 in Precious Metals, by Steven Cochran”
