Advisor Metals Precious Metals Market Update for May 10, 2025
Did Gold revert to the mean this past week?
Nah. Gold finished the week +2.53%. The 50-day and 200-day moving averages continue to point upwards and are getting closer to the gold price. As I postulated last week, two of the possibilities were either the gold price moves lower or the moving averages move higher, which they did. I continue to believe that the gold price and moving averages will meet. If the gold price finds support from the upsloping moving averages, $4,000 gold is a real possibility.
Silver is a different story. It did finish the week up 2.18%. The 50-day and 200-day moving averages have flattened, however, with the silver price between them. We will look for a breakout of this range to get a feel for silver’s direction. I believe we will have a breakout to the upside.
The most significant economic news this past week was the Federal Reserve’s Open Market Committee’s (FOMC) interest rate announcement on Wednesday. They left the benchmark interest rate unchanged in the range of 4.25% to 4.5% and in FED Chief Powell’s press conference after the announcement said “We’ve judged that the risk to higher inflation and unemployment has risen” since March, when the Fed last met, Powell said. But, he added, “We can’t say which way this will shake out.” Duh.
Until next time…