Fed independence pushes investors into precious metals
Speakers
Pippa Stevens
— Markets and Energy Reporter, CNBC
Brian Sullivan
— Anchor, CNBC (Last Call / Power Lunch)
Summary
CNBC's Pippa Stevens reports that gold and silver are hitting record highs as fears about Federal Reserve independence push investors into safe-haven assets, with geopolitical turmoil adding support. Gold is on track for a seventh straight month of gains, while Citi raises its silver target to $100 per ounce on strong investment momentum and physical shortages. Metals are increasingly trading like momentum assets, and traders are stockpiling copper and silver ahead of possible Section 232 tariffs.
- Gold and silver hit new record highs.
- Fed independence fears and geopolitical turmoil support precious metals.
- Gold mining stocks reach records; Agnico, AngloGold, Wheaton, and Gold Fields most correlated.
- Citi raises silver target to $100, citing momentum and physical shortages.
- Silver miners also reach records, with Fresnillo and Hecla moving higher.
- Copper is up about 20% in three months as metals become momentum trades.
- Traders stockpile copper and silver ahead of possible Section 232 tariffs.
Ideas
Fed fears drive safe-haven precious metals demand.
Fears about Federal Reserve independence are pushing investors into safe-haven assets, and geopolitical turmoil including in Venezuela and Iran is also supporting precious metals. This comes as gold and silver hit new record highs.
Gold hits records on safe-haven demand.
Gold is at new record highs and is on track for its seventh straight month of gains for the first time since at least 1974, supported by safe-haven demand from Fed independence fears and geopolitical turmoil.
Gold miners most correlated to gold rally.
Gold mining stocks have reached record levels with the gold rally. Over the past year, Agnico Eagle Mines, AngloGold Ashanti, Wheaton Precious Metals, and Gold Fields have been the most correlated with gold, so they could be names to watch if the gold run continues.
Citi sees silver at $100 on shortages.
Citi raised its silver target to $100 per ounce, citing strong investment momentum and ongoing physical market shortages. Silver is at record highs, retail investors are involved, and silver miners are also hitting records, with Fresnillo and Hecla among names moving higher.
Copper rallies as metals momentum trade.
Traders are stockpiling copper and silver into US warehouses ahead of possible Section 232 tariffs. The ongoing Commerce Department investigation could lead to tariffs on those metals, and clarity on the investigation could impact prices.
