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Believe it or not the price of silver futures in the last couple of days has been stronger than gold. Perhaps silver is trying to get more in line with the historical relationship between gold. The Gold silver its ratio has been out of whack mainly favoring the gold side of the equation.Gold course must try to keep up as an alternative investment to Bitcoin that once again has surged over $100,000 per coin. Or perhaps silver out did gold after Goldman Sachs Group said on Sunday that it no longer expects the gold price to reach $3,000 per ounce by the end of 2025, with the Federal Reserve’s shallower rate cut path pushing the forecast to mid-2026.Gold was whipsawed yesterday after the Washington Post reported that the Trump administration officials were talking about backing off some of the tariffs on other countries. The Washington Post reported that Trump’s aides are exploring tariff plans that would be applied to every country but would only cover critical imports. That caused the US greenback break hard and caused commodities to rally.Yet later President Trump denied the Washington Post story.That caused gold prices to come back down but not after doing some significant technical breakouts on the upside.
Renewed Chinese buying by central banks is out in the open previously China was buying some gold for the central bank on the black market and not reporting it to the market that was an attempt to keep prices low but according to Bloomberg China’s central bank expanded its gold reserves for a second month in December
Bullion held by the People’s Bank of China rose to 73.29 million fine troy ounces in December, from 72.96 million in the previous month, according to data released Tuesday. The central bank resumed adding to its gold reserves in November after a 6-month pause.Bloomberg says that the purchase shows the PBOC is still keen to diversify its reserves even with gold at historically expensive levels. The metal’s rally to a record in 2024 was supported by monetary easing in the US, safe-haven demand, and sustained buying by global central banks.We think Goldman Sachs should have stayed with its call and we still think that gold will hit $3000 an ounce this year. It appears that copper prices also are showing signs of finally bottoming. A recent demand surge in China is suggesting that perhaps the weakness and copper has ended.The fundamental outlook for copper is extremely bullish long term and we could see a surge here over the next couple of months. We would be looking to buy brakes or put on strong option strategies at this point aluminum futures continue to be stuck in a bit of a rut look to sell rallies and buy brakes on the aluminum platinum is also looking very strong as its edging higher.
Buy platinum when it’s creeping and sell it when it’s leaping.More By This Author:They’re Back – Manic Metals ReportThe Energy Report : Mysterious China China Promises – Manic Metals Report