Kitco Senior Market Analyst Jim Wyckoff believes that a recession-free soft landing for the US economy would send commodity prices skyrocketing. He said that the marketplace is now focused more keenly on better economic growth worldwide in the major economies, which would produce better demand for gold and silver.
Wyckoff pointed to silver’s big move following the release of the CPI and PPI reports, which saw it rise from $23.36 on Wednesday morning to $25.24 on Friday. He said that this could be the beginning of silver’s long-awaited breakout.
“Silver is a poor man’s gold, so to speak, and I think what we’re seeing also is the silver market is playing a little catch-up,” Wyckoff said. “We hit a two-month high in silver, and the technicals have turned bullish for silver, suggesting more price upside in the near term.”
Wyckoff also said that oil prices could see a significant increase if the US economy avoids a recession. He said that oil demand is expected to remain strong in the coming months, as the global economy continues to recover from the COVID-19 pandemic.
“If we do get a soft landing, I think we’re going to see a lot of upside in commodities,” Wyckoff said. “I think gold, silver, and oil are all going to be major beneficiaries.”
- The US economy is currently facing a number of challenges, including high inflation and rising interest rates.
- A soft landing would mean that the economy avoids a recession while still bringing inflation under control.
- If the US economy does pull off a soft landing, it would be a positive development for commodity prices.
- Gold, silver, and oil are all commodities that could see significant price increases in a soft landing scenario.