When Powell speaks, gold investors listen

[View this email in your browser]( [Facebook]( [Twitter]( [Forward]( [Kitco Metals]( Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. [Sign up here]( Editor's Picks [@neils_C]( All I can say is thank goodness we send this newsletter out Friday afternoon. It has been a roller-coaster day for the gold market and we are able to provide you the freshest news in the marketplace. In the latest twist in the marketplace, afternoon comments from Federal Reserve Chair Jerome Powell has taken some wind out of gold’s sails. The yellow metal is preparing to end the week in solidly negative territory, sinking from neutral territory. [Powell was reasonably optimistic in his comments]( saying that the U.S. central bank still sees moderate growth in the U.S. despite persistent headwind. Some of the risks he highlighted included trade uncertainty and slower global growth. He also said that a recession is not in the Fed’s base case scenario. Powell’s comments highlight growing investor optimism in the marketplace, which is also weighing on sentiment in the precious metals market. Friday’s down day comes after Thursday’s 2% drop, its biggest decline since June 2018. However, many analyst and investors are not giving up on gold just yet. Despite Powell’s comments, markets are still pricing in a rate cut in less than two weeks. Many analysts have noted that lower interest rates will continue to provide critical support for gold prices. But enough about all this short-term volatility. This week was busy for Kitco News’ intrepid leader Daniela Cambone. She talked legendary investors Frank Giustra, Giustra, chairman of Leagold, said that [the current rally in gold will be the most explosive phase for the precious metal](. He added that the next recession could be even worse than the 2008 financial crisis. “I think the world is in unchartered waters right now. We’re living in a world with a global debt bubble, and any time you get debt bubbles of this magnitude that are global that are fueled by speculation, something’s going to happen” he said. Cambone then spoke with another heavyweight investor Peter Grandich, the founder of trinity financial, who is just as bullish on gold. He said that [this is only the opening phases of the new bull market and that gold has a lot of room left to run higher](. But this bullish sentiment is not just exclusively for gold investors. Anna Golubova reported this week that [some analysts see silver hitting $25 by thanksgiving](. Before I wrap up this newsletter, I just wanted to highlight the humanitarian crisis that is unfolding in the Bahamas as the nation deals with the aftermath of Hurricane Dorian. This is the natural disaster the country has ever faced and the people need as much aid as possible to recover from the natural disaster. We have [highlighted some of the ways people]( can contribute to the relief effort. Finally, the Kitco News team is heading to Colorado to cover the Precious Metals Summit at Beaver Creek. After that, they will be filming at the Denver Gold Forum the following week. Stay tuned to Kitco for the best mining interviews in the sector. 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