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Wednesday, November 29, 2023

Top Stories This Week: Powell Speaks, Gold Slips; EB Tucker's Latest Price Comments

Top Stories This Week: Powell Speaks, Gold Slips; EB Tucker’s Latest Price Comments


It was a week of downward momentum for gold, which briefly made it past the US$1,800 per ounce mark, but had fallen to around US$1,780 by the time of this writing on Friday (December 3) afternoon.

The recently discovered COVID-19 variant omicron has led to market turbulence, and gold has also been affected by comments made midway through the week by US Federal Reserve Chair Jerome Powell.

He indicated that the central bank may wrap up tapering sooner than expected, which could also bump up the timeline for rate hikes. Plans are expected to be discussed at the Fed’s December meeting.

“At this point, the economy is very strong and inflationary pressures are higher, and it is therefore appropriate in my view to consider wrapping up the taper of our asset purchases, which we actually announced at the November meeting, perhaps a few months sooner” — Jerome Powell, US Federal Reserve

Looking at the gold space more broadly, many of the conversations I’ve had this year have centered on why the yellow metal hasn’t performed better given the many factors working in its favor.

I spoke this week with EB Tucker, author of the book “Why Gold? Why Now?” and a director Metalla Royalty and Streaming (TSXV:MTA,NYSEAMERICAN,MTA) and Nova Royalty (TSXV:NOVR,OTCQB:NOVRF). He’s known for his gold and silver predictions, and we talked about if it even makes sense to be making forecasts in this environment.

EB said part of the problem is the market has been distorted with minute-to-minute trends as investors try to make money as quickly as possible. When you hone in on gold at that level, it can get frustrating — but EB reminded investors to keep the long term in mind and think about what they want to own, not what to buy.

He is confident that there will be a point where gold breaks out of its current trend to move higher, and emphasized that there’s still time to get positioned.

“I think people have a window here to get positioned. When gold starts to make that move and major money comes into gold, you do not want to be chasing it” — EB Tucker, author of “Why Gold? Why Now?”

With the future in mind, we asked our Twitter followers this week where they see the silver price at the end of 2021. By the time the votes were tallied, most respondents voted for the US$20 to US$25 per ounce range.

We’ll be asking another question on Twitter next week, so make sure to follow us @INN_Resource or follow me @Charlotte_McL to share your thoughts!

Moving over to the cannabis space, INN’s Bryan Mc Govern recently attended the latest Lift & Co. Expo in Toronto. This was the first Lift event since before COVID-19, and industry members were keen to be back on the show floor.

Many attendees spoke about how valuable in-person events are for their businesses, emphasizing their importance for making connections.

“I’m based in Ottawa, and virtually none of my clients are in Ottawa. So these events are the opportunities that I have to get face time with my clients” — Trina Fraser, Brazeau Seller Law

The psychedelics market also got some attention at Lift, with one day of the conference covering this emerging space. Conversations focused on a number of topics that are quickly becoming familiar, including the idea that big-name pharmaceutical companies will likely jump in at some point and take the industry to the next level.

Want more YouTube content? Check out our YouTube playlist At Home With INN, which features interviews with experts in the resource space. If there’s someone you’d like to see us interview, please send an email to cmcleod@investingnews.com.

And don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Nova Royalty is a client of the Investing News Network. This article is not paid-for content.

The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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