In this presentation, Jeffrey Christian of CPM Group discusses new short-term buy signals for gold and silver, the outlook following the Federal Reserve’s rate increase, and the central bank gold buying narrative.

For gold and silver, CPM also maintains its outlook for higher prices over the next four months as political and economic risks continue to support investment demand. That outlook does not rule out further declines along the way.

The presentation then examines why gold represents a growing share of central bank monetary reserves. Jeff explains how much of the increase reflects the rising value of gold already held, rather than a dramatic expansion in the quantity central banks own. He explains why private investment demand is central to that price increase and why reserve percentages alone can give a misleading impression of central bank buying.

Jeff also discusses the FOMC’s .25 point rate increase, persistent inflation, and signs of economic weakness as well as the reasons rising interest rates matter more to the gold price outlook than the rate decision alone.

Courtesy of the CPM Group