[View this email in your browser]( [Youtube]( [Kitco Metals]( Editor's Picks [@neils_C]( For months now, economists have warned consumers that inflation will be a challenging monster to slay, that that last push to get prices below 2% will be a hard mile, or a tough row to hoe; take your pick of analogies or metaphors because they are all true. This past week, we saw both [consumer]( [producer prices]( rise more than expected, and while prices have come down from their 2022 peaks, we are still a long way from the Federal Reserveâs target of 2%. [Gold]( and [silver]( prices dropped to multi-month lows, testing critical support at $2,000 and $22 an ounce, respectively. Investors continue to flee the gold market as higher-for-longer interest rates support higher bond yields and a stronger U.S. dollar. Instead of gold, investors continue to push equities to record highs, and they also see new opportunities in Bitcoin. [This past week, Kitcoâs Jordan Finneseth noted that so far this year]( more than $3 billion has flowed out of global gold-backed exchange-traded products. At the same time, the newly approved Bitcoin ETFs have seen total inflows of $4.115 billion. Finneseth noted that with inflows of $4 billion, the cryptocurrency ETFs achieved in one month what took the gold market two years. However, even in this difficult environment, we still must acknowledge the underlying strength of the precious metals market. Despite the selling pressure, the precious metals were able to hold critical support levels. [Silver, in particular, has rallied 7% from its lows earlier this week](. Gold and silver may not be attractive assets as the Federal Reserve maintains its aggressive monetary policy stance; however, very few investors are actively shorting these assets. Along with the inflation threat, fears of a recession have not completely disappeared; at the same time, there is enough geopolitical uncertainty to maintain a robust safe-haven bid in gold. Letâs also not forget that a healthy physical gold market provides some price support. [According to the National Retailers Federation, U.S. consumers were expected to spend a record $6.4 billion in jewelry for this yearâs Valentine's Day](. Jewelry purchases represented a significant portion of the $25.8 billion expected to be spent on gifts ahead of Feb. 14. Meanwhile, China continues to assert its dominance in the gold market. According to a report from the World Gold Council, [Chinaâs gold market set all-time highs in several sectors in January.]( The WGC noted that 271 tonnes of gold was withdrawn from the Shanghai Gold Exchange last month, the busiest January on record and the third-biggest in the exchangeâs entire history. Total holdings in Chinese-listed gold ETFs hit a record high last month At the same time, the Peopleâs Bank of China continued to buy gold for the 15th consecutive month. Despite the selling pressure in the gold market, there are some significant pillars of strength, and for many analysts, buying on dips is seen as a solid tactical investment. Thatâs it for this week, have a great weekend. Neils C. Editor's picks [Capitalightâs $2,400 gold target for 2024 not âoverly bullishâ as financial risk, geopolitical uncertainty loom]( $2,400 gold target for 2024 not âoverly bullishâ as financial risk, geopolitical uncertainty loom]( [Jim Rogers - âThere is no wayâ Taiwan wonât be part of China]( Rogers - âThere is no wayâ Taiwan wonât be part of China]( [WEF Agenda: The Global Elite's Plan for the Rest of Us â Seamus Bruner]( Agenda: The Global Elite's Plan for the Rest of Us â Seamus Bruner]( [Central Banks & Gold: What Are They Planning? - Joe Cavatoni]( Banks & Gold: What Are They Planning? - Joe Cavatoni]( [Kitco News]( [Gold prices fall into negative territory as U.S. CPI rises 0.3% in January, annual inflation rises 3.1%]( [Gold prices holding support above $2,000 as UofM consumer sentiment rise to 79.6]( [Consumers to spend $6.4 billion on jewelry this Valentine's Day, but avoid the sticker shock and buy in the secondary market]( [Gold ETFs lose luster with $3 billion outflows as Bitcoin ETFs take in $4.1 billion]( [Bitcoin ETFs achieve in one month what took GLD two years]( [Goldâs bull case remains intact; creating solid value for senior producers - Gabelli Gold Fundâs Chris Mancini]( [Chinaâs gold market was white-hot in January with record wholesale demand and ETF AUM, strong consumer sales, and continued PBoC buying â WGC]( [Gold will average $2,150 by Q4 despite higher-for-longer rates, U.S. investors will return after Fed cuts â INGâs Manthey]( [Gold prices will remain rangebound near $2,000 per ounce, silver could fall below $22 - Heraeus]( [UK-listed RMAU has half of its holdings in recycled gold]( [FOMO frenzy grips crypto as Bitcoinâs market cap surpasses $1 trillion, price hits two-year high]( [iTrust Capital]( [Analysts doubt goldâs strength next week, retail traders donât stop believing]( [Gold Live App]( [Kitco Mining]( [Druckenmiller bets on the worldâs two largest gold producers]( bets on the worldâs two largest gold producers](
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jwyckoff@kitco.com [Hot U.S. producer price index puts price pressure on precious metals]( Promotion [Love 2024]( This message was intended for {EMAIL} , as a subscriber and/or customer of Kitco.
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