87% Chance of Cut as Gold, Silver & Platinum Rocket

The spot gold and silver prices just experienced surprise takeoffs, with spot gold rising 1.5% and silver a massive 5.6%. This puts silver at a new high, and gold in a clear breakout. Platinum joined the rally as well and had a 5% march upward. Predictions thus far point to an economy in 2026 that is weak enough to justify rate cuts. This theory was recently emboldened by two Fed speakers (Williams and Waller) who provided remarks on the economy.

According to Fedwatch, there is an 87% chance of a rate cut before the year ends. Rather than try to guess which industries will benefit most from the liquidity, it can be easier to simply go with liquidity hedges. A rate cut is the clearest liquidity signal there is.

Gold (in AUD) breaking out of a bullish pennant

Silver/AUD – the sky is the limit now

The endless speculation about the AI bubble/not bubble and Google challenging Nvidia is also injecting fresh doses of fear into investors’ year-end trades. References to the Dot Com Bubble are increasing, with Michael Burry recently chiming in. The precious metals continue to make gains in the face of increasing liquidity expectations and increased fear.