Gold SWOT: The silver market has been in a deficit position for the last two years

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The best performing precious metal for the holiday shortened week was gold, up 2.79%. According to Bloomberg, gold was steady ahead of a slew of inflation reports that may offer more clarity on when central banks will start cutting interest rates. The Federal Reserve’s preferred measure of underlying inflation — the core personal consumption expenditures index, which excludes food and energy costs — is due Friday.

Zimbabwe’s platinum miners are asking the government to help reduce their electricity tariffs and fiscal charges where they are paying 50% more than last year and PGM prices have also fallen and are expected to remain soft to weaker. According to BMO, for MAG Silver in their view the most significant impact of the new technical report is to remove the previous uncertainty that was driven by an outdated technical report. With the market now having more visibility on Juanicipio’s expected performance based on the technical report, they expect the increased confidence in Juanicipio to translate into strong performance for MAG shares.

is CEO and chief investment officer of U.S. Global Investors, Inc., a boutique investment advisory firm based in San Antonio that manages domestic and offshore funds specializing in the natural resources and emerging markets sectors. The company’s no-load mutual funds include the Global Resources Fund , the World Precious Minerals Fund and the Gold Shares Fund .

 

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