Advisor Metals Precious Metals Market Update for February 1, 2025
Inflation reduction stalled, gold at all-time high, lions and tigers and bears, oh my!
The FED kept interest rates unchanged at their meeting this week. The wording of their announcements is always significant. In this week’s announcement the words “has made progress toward” inflation was deleted and the words “Inflation remains somewhat elevated” was added. Which, ahem, we have been writing about for months.
This was further confirmed by the Personal Consumption Price Indexes which showed that the core rate which the FED uses as its main inflation guide was up 2.8% from a year ago and above its 2% inflation target.
With that in mind, the spot price for gold went above $2,800 and settled just below that to an all-time high. Silver also increased and settled at $31.28 an ounce. The gold/silver ratio is at 89.50 above the 85 or so level where silver prices usually increase.
Buy metals on the dip or on the momentum. To use Warren Buffett’s criteria that we wrote about last week, will this investment make sense 10 or 20 years from now? The answer with metals is, in my opinion, a resounding YES!
Go to our website for a free gold and silver guide, for more information, or to contact me about making a purchase. www.advisormetals.com ira@advisormetals.com 626 788 5770.