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2024 Precious Metals in a Rising Storm
Sean Brazney of Monex and Jeff Christian from CPM Group discuss the looming economic and political turmoil in 2024 and their outlook for precious metals.
Liquidity and Inflation
The year begins with uncertainty due to conflicting signals from the Federal Reserve, suggesting potential rate cuts by summer or later, despite persistent inflation. The discussion includes questions about how these factors will influence liquidity in financial markets.
Inflation Analysis
Jeffrey Christian explains that while the overall rate of inflation has decreased due to drops in petroleum product prices, core inflation remains stubborn. He predicts that inflation may not decline as expected, particularly with potential upward pressures from oil prices and service costs.
Interest Rate
Despite market expectations, the Federal Reserve is likely to implement rate cuts only if the economic conditions significantly deteriorate, most likely in the latter half of the year.
Economic Outlook
With excess liquidity being withdrawn to control inflation, concerns arise about potential adverse effects on the economy due to new financial regulations and their unintended consequences.
Economic Recession and Commodity Impact
CPM Group still see the potentian for a recession in the second half of the year, potentially less severe than previously expected. This economic slowdown may negatively affect industrial commodities like copper but could boost demand for financial assets like gold and silver due to their protective value during economic volatility.
