Is gold on the cusp of a Santa Claus rally?

[View this email in your browser]( [Youtube]( [Kitco Metals]( Editor's Picks [@neils_C]( We have mentioned a few times in this weekly note that although [gold]( is stuck, there are worse places to be than within striking distance of $2,000 an ounce. What makes gold an exciting investment, even as it treads water, is that it has reached this important milestone while most Western investors have shunned the market. At the same time, gold is entering its best seasonal period of the year. In his latest gold report, [Ole Hansen, head of commodity strategy at Saxo Bank, noted that in the last six years, gold prices in December have seen an average return of 4%, while silver prices have seen an average return of 7.25%.]( While there is still healthy optimism in the marketplace, there are also potential risks, such as the cease-fire between Israel and Hamas, which will reduce safe-haven demand for gold. Ultimately, the precious metals remain at the mercy of the Federal Reserve. This past week, the minutes from the November monetary policy meeting show that the central bank remains firmly committed to fighting inflation. The Federal Reserve signaled that it will maintain its restrictive monetary policy for the foreseeable future. According to many economists, investors won’t feel comfortable jumping back into gold until there is a clear sign that the Federal Reserve is ready to ease interest rates. While gold may be a dull trade, there are other commodities that are seeing some significant momentum. A lot of ink has been spilled over uranium as prices have pushed to $80 an ounce. [The rally in uranium has helped the Sprott Physical Uranium Trust]( (TSX: [U.UN]( U.U) hit a significant milestone, with assets under management (AUM) rising above $5 billion. In an interview with Kitco News, John Ciampaglia, Chief Executive Officer of Sprott Asset Management, said there is still plenty of potential for the other yellow metal. He explained that prices have to go higher to bring enough supply on line to meet future demand. He said the market needs to find 1.5 billion pounds of uranium to meet demand. "We need to essentially double our primary production over the next 20-odd years in order to meet expected demand," he said. If you want to look a little closer to home, platinum is a metal to keep an eye on. On Tuesday, the World Platinum Investment Council published its third-quarter trends report and noted that demand will drive a nearly 1.1-million-ounce market deficit. Platinum saw record industrial demand in the third quarter, driven by fiberglass manufacturing. The wind power sector uses platinum-based glass fibers to make rotor blades lightweight and more efficient. [Platinum prices have struggled through most of 2023; however, growing demand generating a market deficit this year and next will provide solid support for the precious metal, according to the WPIC.]( Have a great weekend! Neils C. 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