The price of gold fluctuated this week, but overall it rose, spent a lot of time above the level of US$4,800 an ounce and even reached near US$4,900.
Silver also performed well and breached US$82 an ounce.
Prices for both precious metals have fallen since the Iran war began, and this week’s rally has been driven by hopes that a resolution may be reached.
The same thinking pushed the S&P 500 (INDEXSP:.INX) to a new record high During the period.
The situation is rapidly evolving, but at the time of this writing the ceasefire between the US and Iran was still in place, with the possibility Extend it beyond the first 10 days.
Israel and Lebanon have also done 10 day ceasefire agreed upon.
Uncertainty still remains in the Strait of Hormuz – while Iran says it is now fully open to commercial shipping, President Donald Trump said the US blockade will remain in place until the US reaches a deal with Iran. about 20 percent Most of the world’s oil and LNG typically passes through the strait, and its closure has caused major disruptions in those markets and elsewhere.
I heard from Bob Moriarty of 321Gold this week, who said he thinks it’s still very early in the gold cycle. In his view, the catalyst for its next move would be the widespread realization of the inflationary pressures being created by the war. Here’s how he explained it:
“I went through the Arab oil embargo in 1973, and 6.5 million barrels of oil were taken off the market. They weren’t taken off the market in terms of blowing up a refinery, they were taken off the market because the Arabs turned off the taps. So when everybody was happy, all they had to do was turn the taps back on. But the price of a barrel of oil went from US$3 a barrel to US$20 a barrel almost overnight.
“Now, the amazing thing to me – and this is, in every sense, worse than 1973 or 1979. I’m absolutely stumped driving by a gas station and not seeing a line 2 miles long. We pay US$13 a gallon for diesel in Europe. I live in France, and the strange thing is that people are driving, still driving cars. They’re not fueling their cars. They’re not standing in line. One day soon they’ll realize, ‘Hey, wait a minute, we need to do something now.’
Moriarty stressed that we are living through dangerous times, and encouraged investors to protect themselves by securing supplies of physical gold and silver, as well as fuel and food.
However, to make money, he buys resource stocks, and he particularly views gold companies as “extremely cheap” compared to “everything else.”
Don Durrett of GoldStockData.com, who I spoke with this week, made a similar point during our conversation. He has spent years amassing a huge portfolio of gold and silver stocks, but he said he still sees companies with 10 bagger potential.
It is also worth noting how the latest US Producer Price Index (PPI) data Released on Tuesday (April 14), there may be an impact on gold and silver, it indicates an increase of 0.5 percent from February.
The lower-than-expected reading helped boost expectations that the US Federal Reserve will still be able to cut interest rates in 2026. Of course, some experts have pointed out that the March PPI numbers do not reflect the full impact of the war.
The Fed’s next meeting is scheduled for April 28 to 29, and at this time the CME Group (NASDAQ:CME) FedWatch tool shows that most market participants expect officials to keep rates steady.
Bullet Briefing – Silver set for sixth consecutive loss
of silver institute Latest World Silver SurveyReleased this week, it signals that the white metal is set to record its sixth consecutive decline in 2026.
The shortfall is estimated at 46.3 million ounces, higher than the 2025 shortfall of 40.3 million ounces. It is expected to arrive despite increasing supply and low demand.
Overall, the institute describes its outlook on silver as “constructive”, but identifies several risks to the story, including damage to industrial demand due to the Iran war and the possibility of central banks selling gold, which could also weigh on silver.
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Securities Disclosure: I, Charlotte McLeod, have no direct investment interest in any of the companies mentioned in this article.
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