The gold and silver prices staged a rebound rally on Friday as the Strait of Hormuz was temporarily reopened.
The prices of both metals were up even more earlier in the day, although as the market closes for the week, the gold futures are at $4,849, while the silver futures are at $80.93.
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As you can see in the chart, gold got as high as $4,912, while silver was actually even above the $83 level. And while a violation of the latest temporary truce could yet send the oil price back higher, and as a result, the gold and silver prices back lower, it’s also encouraging for silver investors to see the price back above the $80 level again heading into the weekend.
As you can see on the front page of CNBC, the stock markets rallied again, and are acting like the global economy has never been better.
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I maintain my belief that not only will a longer-term resolution to the war be more difficult to attain, but also that even if the war ended tomorrow, there’s still economic damage that’s been done, that I don’t feel has been priced in yet.
Of course, for the good of the world, it would be extremely good if the Strait were to remain open permanently, although I personally remain rather skeptical about that occurring.
As you might imagine, there was also a big drop in the crude oil price.
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And also the U.S. bond yields for that matter.
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However, my guess is that a month or more from now, we’ll be looking at higher levels for both.
I would also mention that there was a regulatory change in India that, on one hand, seems small, although it has actually increased the probability of another shortage in the Indian market.
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Indian banks have halted gold and silver import orders from overseas suppliers, with tons of the metals stuck at customs as a formal government order has not been issued authorizing bullion imports, trade sources said.
Without fresh imports, India could face supply shortages, as the world’s second-largest gold consumer and biggest silver buyer relies on overseas purchases to meet nearly all its demand.
We’ll dig into that one more next week, although I did talk about it on today’s YouTube show, which you can see here.
But hopefully you can just go out and enjoy a peaceful weekend, with the gold and silver prices higher, and with the Strait of Hormuz open today, regardless of what that might mean tomorrow or next month.
Sincerely,
Chris Marcus
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