What is up? US GDP is one thing that’s up at 3.2%. Normally that suggests that the stronger economy will lead to higher interest rates which will be negative for the metals. Higher rates typically means a stronger dollar which makes gold more expensive for foreign buyers.
But today, Gold and Platinum were dance partners with that GDP number. Why? Because increasingly the metals will be moving in response to supply and demand. Supply in platinum is tiny as I’ve discussed throughout these blog posts and in my e-book. And annual supply of gold although 20 times that of platinum, is still nominal in the context of world money and the increasing focus on gold as the world currency.
BEWARE my friends. Gold’s March higher will now be more a function of this perspective than as a store of value in a crisis or during inflation. I expect higher prices ... in fact substantially higher prices even if the case is a firming US dollar.