Strength in Precious Metals Continues

Gold and Silver are showing strength starting off the week after showing gains yesterday and today, with Silver up over 2% and Gold up near 1.5% on the session today. Both Gold and Silver had strong moves higher in 2024, Gold most notable due to the market creating a new all time high price. A big component of the rise in Gold prices had to due with the Fed environment, and with potential rate cuts coming this year there could be continued volatility in the metals due to the changing environment.

While metals are seeing nice gains this week, the equity indices are pulling back slightly today with the S&P and Nasdaq being down near 0.5% on the session. There was little data today and for the rest of the week, and the equities seem to be having some selling pressure after 6 straight days of gains for the S&P and Nasdaq. The CME Fed Watch Tool has seen a pattern this year of the rate cuts getting pushed later in the year, and now the market is pricing in the first rate cut in September, where previous expectations had the first cut coming at the July meeting.

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