An Important Precious Metals Update
A look at where precious metals and miners stand right now, especially after the recent surge in silver, platinum, and palladium, and when the rally in gold and miners will accelerate.
Vladimir Lenin’s famous quote, "There are decades where nothing happens; and there are weeks where decades happen," applies perfectly to precious metals, with their recent explosive surge, particularly in silver and the platinum group metals (PGMs). Despite this, there is still some consternation about why gold and mining stocks have delivered a more tepid performance. However, that is likely to change very soon. In this update, I will show where precious metals and miners stand right now and what I expect as we head into the new year.
Let’s begin with gold, specifically in the form of COMEX futures. While silver and the platinum group metals have been grabbing the headlines, gold has held its own, closing at a record high of $4,562 on Friday. As I noted on December 22nd, gold finally broke above the key $4,400 resistance level that had formed at the mid-October peak. I described this breakout as a highly bullish development at the time, and sure enough, the price has continued to climb. Gold remains on track to reach approximately $5,200, as I explained in late November.
Now, it’s important to remember that last week was a holiday-shortened week due to Christmas, and trading volume was very light, as it always is, with much of the financial world in holiday mode, traveling, and spending time with family.
That is a crucial point, as volume is the lifeblood of the financial markets (learn more), and without it, it’s difficult for assets to gain traction—particularly ones with deep liquidity like gold, unlike the much smaller markets of silver and PGMs.
Right now, gold is in a very solid technical position, but I believe it will require moving beyond the holidays, including New Year’s, for the rally to truly pick up steam.
In addition to COMEX gold futures, I closely monitor gold futures on the Shanghai Futures Exchange (SHFE), which have been one of the major drivers of the bull market in gold since early 2024.