CPM Group Sees Short-Term Buy Signals in Gold and Silver
Jeffrey Christian of CPM Group says there are new short-term buy signals for gold and silver. The commodities research firm sees higher prices ahead, driven by investment demand and political and economic risks. Despite this positive outlook, CPM Group notes that further declines are possible along the way.
The Federal Reserve's decision to raise its policy rate by a quarter of a percentage point is seen as significant for gold's price outlook, more so than the rate hike itself. The firm also discussed central bank gold buying and how it supports investment demand for precious metals.
Gold faced pressure recently due to rising Treasury yields, but debasement demand has provided support. CPM Group sees a potential rally in gold prices on a Fed hold or modestly if there is a hike, with $5,000 per ounce back on the table. A hawkish Fed would not keep gold prices down for long.