In this presentation, Jeffrey Christian of CPM Group looks at recent movements in gold, silver, platinum, and palladium markets. Gold prices have been consolidating near the $5,000 after reaching record highs earlier in the year. Many market participants question why prices have not risen even more sharply as tensions in the Middle East escalate and oil prices rise.

Jeff explains why gold does not necessarily move tick-for-tick with oil prices, even during periods of conflict in the Middle East. While higher oil prices can support gold, the historical relationship between the two markets is far weaker than many investors assume.

The presentation then moves to the relationship between gold and interest rates.

Jeff also discusses the current consolidation in gold and silver prices, noting that some investors have stepped back after strong gains earlier in the year and that seasonal patterns and weaker fabrication demand are affecting the market. While short-term price volatility, including potential pullbacks, remains possible, CPM Group continues to see economic and political conditions that support higher precious metals prices over the longer term.

Courtesy of the CPM Group