While gold & silver prices continue to underperform, Peter Hug of Kitco Metals discusses Asian physical demand, the RBA rate cut, Thursday’s BOE meeting and the ongoing Syrian-Israeli conflict.
The 2-week ruckus for physical gold in Asia ended today as markets open in Tokyo, which was met with continued ETF redemptions in the US. In fact, medium-sized investors are viewing metal yields as “dead assets” and opting to dividend-yielding stocks. According to Peter, metals will continue to look heavy and potentially shift downwards for another year. The Australian rate cut proves that central banks around the world will continue expansionary monetary policies until the economic rebound takes hold. However, analysts predict inflationary pressures from these rate cuts, which will only happen when banks begin to lend to consumers. Lowered rates are also expected from the BOE meeting this week. Finally, Peter states that the geopolitical issues surrounding Syria and Israel should have positive effects on the metals; however, they are failing to gain upward momentum.Help us spread the ANTIDOTE to corporate propaganda.
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