We write to you as we approach the end of another record-breaking week. This was the week, of course, when gold proved its mettle and broke through the $2,500 ceiling. The ceiling is both technical and psychological.
Why did the price push through $2,500? According to both the LBMA and the World Gold Council, it is largely down to Western buyers returning to the market. Elsewhere analysts are suggesting that central bank purchases are really driving the price.
Even though the price has since consolidated somewhat, it hasn't done anything unexpected. Light profit-taking was to be expected. This is also the week when the biggest meeting of central bankers is taking place, at Jackson Hole. The annual meet-up, known as the Wyoming Federal Reserve symposium begins later today.
It's not uncommon for attendees to make market-moving announcements at the meeting. Whilst the Fed minutes released earlier this week were pretty ordinary, Chairman Powell will give a speech tomorrow that may give further insight into the Fed's plans.
Having said all this, it's unlikely anything will be announced either by central bankers or in economic data releases, that will significantly change the course of things to come. The last two decades have been unprecedented to say the least, now as we feel the brunt of the damage caused we are moving into another era of unknowns - an era of global quantitative tightening. What comes next? Well, this was very much the focus of my conversation with David Hunter whom I spoke to earlier today.
David describes himself as a contrarian investor and he makes some big calls when it comes to how the market will play out in the coming months and years. He makes a conservative (his words) call on the gold price, predicting it to hit $3,000 by the end of the year, silver he sees at $75. Beyond that? Tune into the interview here, to see what he thinks we can expect.
Precious metal expectations were just a small part of our conversation, if you're interested to hear his thoughts on the stock market, commodities, and central bank moves then this interview is one for you. So may I suggest you grab a coffee and settle down for half an hour while David Hunter prepares you for what lies ahead.
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