Gold and Silver Pull Back — Smart Money Buys When Others Wait 
Gold Steady as Investors Eye Friday’s Inflation Data
Gold prices are treading water ahead of Friday’s key economic release: the PCE index, the Fed’s go-to inflation gauge. Spot gold hovers near $3,400 an ounce, with December futures at $3,447.
Here’s what to watch: Markets are practically certain of a September rate cut, with CME’s FedWatch showing 88% odds. But Fed officials aren’t rushing to judgment. New York Fed President John Williams wants to see the data first, and July’s PCE is expected to hold steady at 2.6% year-over-year. The core reading — stripping out volatile food and energy — should tick up 0.2% monthly and 2.7% annually.
Other metals are mixed: silver inched higher, while platinum and palladium held relatively steady.
Trump’s Attempt to Fire Fed Governor Rattles Markets, Lifts Gold
In an unprecedented move, President Trump announced Monday he’s firing Fed Governor Lisa Cook over unproven mortgage fraud allegations — the first such attempt in the central bank’s 111-year history. Cook immediately lawyered up with attorney Abbe Lowell and is fighting back, calling the move “illegal.”
Market impact was swift: The dollar index dropped 0.3% and stock futures slid. For gold investors, the political drama reinforces the metal’s appeal as a haven asset with no counterparty risk. The yellow metal has already surged 30% this year, and this Fed independence scare is adding fuel to the rally. Real estate and commodities are also catching a bid, though crypto remains unpredictable.
Japan’s Central Bank Flags U.S. Tariff Risks
BOJ board member Junko Nakagawa isn’t mincing words about U.S. trade policy uncertainty. Despite existing agreements, she warns that lingering tariff questions could sap business confidence in Japan and beyond, potentially dragging down global growth.
Key date: October 1’s “tankan” business sentiment survey will reveal how Japanese companies are handling the uncertainty. Meanwhile, the BOJ is walking a tightrope — it raised rates to 0.5% this year after ditching its massive stimulus program, and nearly two-thirds of economists expect another quarter-point hike by year-end. Adding to the complexity: persistent food inflation and rising wages that could keep pushing prices higher.
Nvidia Crushes Earnings, But Bubble Talk Grows Louder
Nvidia delivered another blockbuster quarter with revenue jumping 47% year-over-year. CEO Jensen Huang declared “the next industrial revolution has begun,” pointing to insatiable demand for AI chips from cloud and enterprise customers.
But here’s the rub: Some market watchers see echoes of past tech bubbles — nosebleed valuations, torrential capital flows, and a widening gap between AI promises and real-world results. If the AI story stumbles, overleveraged tech stocks could crater. That’s where gold comes in — historically, it’s been the reliable safe haven in the markets when speculative frenzies unwind.
Fidelity: Gold’s Bull Market Has Room to Run
Fidelity International’s Ian Samson isn’t calling a top on gold anytime soon. Up 27% in 2024 (28% year-to-date through August 27), the metal still has legs. Some Fidelity funds have doubled their gold allocation from the typical 5% to 10%, betting the rally continues.
The bull case remains intact: falling rates, sticky inflation, slowing growth, and a softening dollar create the perfect backdrop. Add in steady central bank buying from China, India, and Turkey — plus tight supply — and Samson sees a path to $4,000 by late 2026. He notes this run mirrors gold’s 2001-2011 tear, when it delivered 20% annual returns.
Translation: “This bull market is far from over.”
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