Gold Reaches New All-Time High

Gold Prices Hit Record Highs – Gold Passes $2,500/oz

If you were watching the gold price Friday, you witnessed history in the making.

Gold prices broke the $2,500/oz barrier for the first time ever, reaching as high as $2,510/oz, continuing its impressive winning streak. Many attribute gold’s gains to the growing optimism that the Federal Reserve will cut interest rates in September.

“Just a Matter of Time” Before Gold Hits $3,000

“I think gold is just a matter of time before it gets to $3,000 an ounce.” says Bloomberg strategist Mike McGlone.

In an interview on Yahoo Finance, McGlone made this striking prediction about gold prices. McGlone's not alone in his golden optimism. His forecast is riding the wave of a growing chorus on Wall Street, with more and more investors jumping on the gold bandwagon. 

July CPI Surprises with 2.9% Annual Rate

The Consumer Price Index (CPI) report for July 2024 shows inflation unexpectedly cooling to an annual rate of 2.9%, down from 3% in June. This marks the lowest level since March 2021. Core CPI, which excludes volatile food and energy prices, rose 3.2% year-over-year, aligning with economists' forecasts. The numbers also found: 

• Shelter costs increased 0.4%, accounting for 90% of the total inflation rise
• Food prices saw a modest 0.2% increase
• Energy costs remained stable
• New vehicle prices dropped 0.2%, while used car prices fell 2.3% for the month 

This data suggests the Fed's efforts to control inflation may be yielding results, potentially supporting the case for rate cuts soon. 

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July Retail Sales Defy Doom and Gloom

U.S. retail sales significantly outperformed expectations in July 2024, rising 1% compared to the anticipated 0.4% increase. This robust growth, coupled with positive revisions to June's figures, suggests continued consumer resilience despite economic concerns.

The data also showed:

• Broad-based increase across various retail categories
• Strong performances in motor vehicle sales and electronics
• Data indicates widespread consumer spending 

This positive retail sales data, combined with recent favorable inflation readings, has led some economists to suggest that the Federal Reserve should shift its focus from inflation to potential labor market issues and their broader economic implications.

“It’s only a matter of time before the [silver] price goes vertical in order to catch up to this structural deficit...” 

That’s according to Alan Hibbard in his recent interview on the Schwab Network. During his time, Alan laid out a compelling case for why silver prices are likely heading higher.  

• Rising Demand: Silver is increasingly essential in industries like photovoltaics, consumer electronics, electric vehicles, solar energy, medical applications, and more.
• Shrinking Worldwide Supply: Most silver is used in industrial applications, not as currency. Once used, most of the silver is not recoverable even with recycling. This persistent supply-demand imbalance is creating a significant structural deficit. 

When demand for an asset is surging and the supply is tightening, there's only one direction for the price to go. That's why Alan Hibbard believes it's only a matter of time before ‘the [silver] price goes vertical.’

Watch the full interview of Alan on Schwab Network here. 

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That’s it for this week's GoldSilver Nuggets. We'll be back next week with more news and updates.

Best,

Brandon S.  
Editor
GoldSilver