Gary Savage: Gold, Silver — Next Price Targets and Long-term Calls
Gold trended down this week, dropping to just over US$3,200 per ounce on the first day of May.
While the yellow metal remains historically high after a strong run this year, its price has pulled back from last week’s record-setting level of US$3,500, causing concern for some market participants.
However, many experts agree that this week’s retreat isn’t a reason to worry.
Speaking to the Investing News Network, Gareth Soloway of VerifiedInvesting.com described it as “very normal,” saying he remains bullish on gold in the mid to long term.
His technical analysis shows that the US$3,100 to US$3,140 area will be important to watch moving forward — in his view, that’s when bullish players should start re-entering the space, boosting the price.
Soloway also outlined gold’s future price potential, saying he sees a potential path to US$7,000. Check out the full interview for more of his thoughts on gold, as well as silver and the US economy.
Bullet briefing — Fed to meet next week, US-Ukraine deal signed
Market watchers eye Fed meeting
Eyes are shifting to the US Federal Reserve’s next meeting, set to run from May 6 to 7. It follows initial numbers showing that real GDP contracted by an annual rate of 0.3 percent in Q1.
That’s the first negative reading since 2022, and as the news weighed on the stock market, US President Donald Trump took to social media to suggest the data is an “overhang” from Joe Biden’s term.
Trump has pressured Fed Chair Jerome Powell to cut interest rates sooner than later, but CME Group’s FedWatch tool shows the vast majority of market participants expect rates to stay flat.
Trump advisor Elon Musk also has his eye on the Fed. Speaking to reporters on Wednesday (April 30), he said the US$2.5 billion renovation of the central bank’s headquarters could become a point of inquiry for the Department of Government Efficiency, better known as DOGE.
Calling the cost an “eyebrow raiser,” Musk questioned where the money is being spent. The price of the project was initially set at US$1.9 billion in 2021, but has increased since then.
“Since at the end of the day, this is all taxpayer money, I think we certainly — we should definitely — look to see if indeed the Federal Reserve is spending $2.5 billion on their interior designer” — Musk
US, Ukraine sign critical minerals deal
The US and Ukraine signed a much-anticipated minerals deal on Wednesday, ending months of often-tense negotiations between the two countries. If approved by parliament in Ukraine, the agreement will set up a reconstruction investment fund that will be split 50/50 between each party.
According to Ukrainian officials, the deal is more equitable than previous versions.
The fund will be financed only by new licenses for critical materials, oil and gas; aside from that, Ukraine will not have to pay back wartime aid provided by the US.
While Ukraine had pushed for security guarantees from the US, that…
