If you’ve been watching gold lately, you’ve probably noticed it’s been all over the place — up $50, down $50, right back where it started. It’s like a yo-yo. So what’s causing these swings, and where could gold be headed next? Let’s take a look.
Why Gold’s Been So Volatile
One of the big headlines over the weekend was that gold reserves at the London Exchange are sitting at extreme lows. That lit a fire under gold prices, sending it sharply higher. But by the time Monday rolled around, all those gains had been erased.
Meanwhile, silver has been even stronger. It snapped up faster than gold and is now trading above $33.43, with the next key level around 34.25. If gold can break back above $2,970, we could see another strong push higher in both metals.
The Bigger Picture: Why Gold Still Has Room to Run
Even with all this back-and-forth action, I still think gold’s got upside pressure behind it. Why?
✅ Inflation is sticking around – Last week’s CPI and PPI numbers proved we’re not out of the woods yet.
✅ The Fed is in a tough spot – They’ve been hinting at rate cuts, but inflation might force them to rethink that.
✅ Supply is tightening – Between shrinking reserves and strong demand, there just isn’t a ton of gold floating around.
Of course, nothing goes straight up. That’s just how markets work. But the way I see it, if gold keeps holding these levels and inflation doesn’t ease up, the long-term trend still points higher.
Want More? Catch the Full Market Radar
I covered gold, silver, crude oil, and the latest inflation trends in more detail in today’s FREE Market Radar show.
If you want to stay ahead of the market’s biggest moves, make sure to check out the full recording here.
Stay sharp out there,
— Geof Smith
P.S. President Trump’s energy gamble could pay off big for the U.S. — And this is exactly how I’m playing it!
