Silver is up nearly 6% as it looks to break out of a recent range.
These are the best levels since the crushing rout on January 30. Notably, that was the final trading day of January and this is the final trading day of February.
The chart suddenly looks more promising as it breaks above the early February highs.
This will mark the 10th consecutive month of gains in silver as it benefits both from the USD debasement trade along with industrial electrification demand.
The gains are impressive today given that we had so much volatility last month and what looked like a blow-off top. Instead, silver steadied early in February and is now marching back higher.
That suggests insatiable demand for silver and previous metals. Gold prices were lower earlier but have turned around and are up $50 to $5236 in what will be the all-time highest weekly close for gold (if it holds).
Today's US PPI report raised some fresh questions about the Fed's ability to cut rates. In addition, oil prices are up 3% today in a move that will add further inflation pressure to the March pipeline data (and beyond). The oil move is highly conditional on what happens in Iran so keep a close eye on that.
Should the US get significantly involved in Iran -- particularly if it looks like it be an operation for many months -- then I would expect further large bids in gold and precious metals.
"The idea that we’re going to be in a Middle Eastern war for years with no end in sight -- there is no chance that will happen," Vance told the Post. He described the range of options as strikes that would "ensure Iran isn’t going to get a nuclear weapon" or actions that could lead to a diplomatic solution.
Just now, US Secretary of State Marco Rubio announced a March 2-3 trip to Tel Aviv and that looks like a sign that nothing is imminent, though with war nothing is certain.
