HULT Private Capital Watching Precious Metals

Award-winning investment boutique HULT Private Captial has been closely monitoring the precious metals markets.

In the past 30 days, both silver and gold prices have been on an uptick.

According to HULT Private Capital’s Amrit Singh HULT believes that the Fed’s two previous rate hikes of 0.75%, combined with the lessening fears of energy issues that started with the Ukraine invasion, are leading to a calming effect.

Spot gold has fallen back to $1763 per ounce, well below its high of around $2050 per ounce seen in March. The continuous gold futures price is at $1776 a 0.7% premium, down slightly from a 0.8% premium a week ago.

HULT Private Capital’s Singh said that the US consumer prices did not rise in July, mainly due to a significant drop in gasoline prices. The US inflation benchmark Consumer Price Index (CPI) was flat at 0% in July, a sign of relief after it had advanced 1.3% in June.

According to HULT Private Capital’s Singh, “Gold and silver both saw a knee-jerk reaction, the tamer in a on data led investors to believe that the Fed is going to be less aggressive this month. The price dipped then rose to the recent high but then has fallen back. Metal’s investors are not certain if the Fed will be ‘tame” or ‘tamer.’ The subsequent fall to today’s levels makes us believe they will be tame.”

Singh continued, “The technical posture of the near-term precious metals markets has turned bullish recently; if inflation starts to show its head again as it has in the UK, or signs of recession become clearer, the next price objective for Gold bulls is first $1850 and then $1900. Gold performs well if interest rates are low, so the FED’s next moves will be key.”

HULT Private Capital will be watching the Fed’s coming comments looking for hints about its potential rate hike path.