Jeffrey Christian of CPM Group discussed the recent declines in gold and silver prices, suggesting that the market may be nearing a bottom. Gold fell below $4,000, hitting a low of $3,971 before dropping further to $3,900 within hours. Christian acknowledged the possibility of additional weakness toward $3,950 or even $3,800 but emphasized that CPM has greater confidence in the timing of a rebound than in predicting the exact bottom price. The firm expects higher gold prices through the end of 2026 and beyond once the market turns.
Silver also experienced a sharp decline, trading around $50.13 before falling to $49.08. Christian noted that $50 could provide support, with additional support near $48. He dismissed the likelihood of a drop to $40, suggesting that a quick rebound is more probable due to the number of investors waiting to buy. The presentation also covered platinum, trading near $1,442 with potential support around $1,300, $1,400, and palladium near $972, which CPM analyst Rohit Savant described as oversold.
Christian also addressed economic indicators, including the advance estimate of third-quarter U.S. GDP, consumer spending, declining savings, and persistent PCE inflation. He cautioned that initial GDP figures are subject to revision and highlighted the importance of monitoring spending that outpaces disposable income growth.