In this presentation, Jeffrey Christian of CPM Group discusses the sharp surge in gold, silver, and other metals prices following renewed political and economic uncertainty in the United States and abroad.

Jeff explains how precious metals prices spiked after news that the U.S. Department of Justice had launched a criminal investigation related to the Federal Reserve, raising serious concerns about the perception of Fed independence. He discusses why challenges to the Federal Reserve’s credibility directly undermine confidence in the U.S. dollar, Treasury markets, and global financial stability.

Jeff also explains why investment demand, rather than fabrication demand, is driving much of the current price action for the metals, and why none of the underlying political, economic, or financial risks that have supported higher precious metals prices are likely to improve.

He also discusses inflation data from the latest CPI report, and persistent price pressures in housing, food, and services, and explains why inflation remains a complicating factor for monetary policy.

Courtesy of the CPM Group