AGE Gold Commentary

Greetings!

Gold and silver are front-running Fed rate cuts and charging to new cyclical highs, with gold breaking $3,500 and silver punching sharply above $40 over the Labor Day weekend.

In our August 18 update, we analyzed previous Fed rate-cut cycles and explained how they drove precious metals values higher. We are beginning to see the same Fed-effect in the gold and silver markets.

When Jerome Powell spoke at Jackson Hole recently, he discounted inflation risk and emphasized the deteriorating US employment market. In doing so, Powell confirmed what we anticipated. The Fed will begin cutting interest rates to stimulate the labor market.

Well, rate cuts stimulate the gold and silver markets, too!

In this brief AGE Gold Commentary, we review the latest charts for gold and silver, US Treasury yields, and the dollar as of market closes on Friday August 29. Over the Labor Day weekend, gold and silver charged higher, still confirming that our expectations were correct.

If you have been following our recent updates you have had a chance to get ahead of these big, short-term gains for gold and silver of over 5% and 7%, respectively.

The good news is, despite this sharp rally, the biggest gains for gold and silver have historically come once rates begin to fall. It is likely that we will see higher values for gold and silver after next Fed meeting on September 17. Time will tell.

You can also view this video on the AGE YouTube channel, which includes a transcript.

Sincerely,

Dana Samuelson
President