The Federal Reserve's difficulty balancing inflation control with economic support is pushing more US investors toward gold and silver, according to CPM Group managing partner Jeffrey Christian. Speaking on the Northern Miner podcast, Christian said the central bank's competing priorities create the kind of uncertainty that historically drives capital into precious metals.
Christian described the current environment as one where investors are weighing a broad range of potential disruptions beyond monetary policy alone, including political, financial and social risks. He noted that substantial capital has flowed into newer, unproven companies built around emerging technologies, adding another layer of market anxiety that supports demand for traditional stores of value.
Looking ahead, Christian expects gold prices to extend their advance over the coming months, saying a test of the $5,000 an ounce level is well within reach and that a move above that threshold is plausible within roughly four months.
Investor behavior in the sector remains split. Christian said many traditional buyers are accumulating gold and silver for the long term because of concerns about the broader economic and political outlook, while a separate group of shorter term traders has been selling into recent price strength, creating volatility even as the longer term trend stays supportive for the metals.
Source: MINING.COM - https://www.mining.com/feds-decisions-driving-investors-to-precious-metals-expert/