The Gold & Silver Rally Awaiting Direction From the Federal Reserve

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	Is Gold Ready To Fly Or Will The Fed Clip Its Wings
	After November's massive rally, we are finally starting to see some follow-through buying in the gold market as prices end the week at a four-month high above $1,800 an ounce. . . . Kitco		Western Vaults Drained Of Silver To Meet Soaring Indian Demand	By the end of November, India had imported 8,000t of silver – up substantially on the 4,500t taken in during the entirety of 2021. . . .Robin Bromby
	Gold Rockets To $3,000 As Central Banks Fail On Inflation Mandate
	In 2023, gold finally finds its footing after a challenging 2022, in which many investors were left frustrated by its inability to rally even as inflation surged to a 40-year high. . . .Ole Hansen		Gold Rising To $2,250, BTC Falling To $5,000 - Both Next Year!	We have over time been pretty positive about the prospects for the gold price – currently wavering just short of the $1,800 mark, but have tended to be negative on cryptocurrencies. . . .Lawrie Williams
	Central Banks Maintain Their Appetite For Gold
	Central banks continue to accumulate gold according to the latest data available.1 In October – data is lagged by two months . . . . Krishan Gopaul

All eyes are on Wednesday, when Fed Chairman Powell will make his initial statement followed by his question and answer session. The market experts expect to see a ½ point increase in the Fed Funds interest rates, but anything is possible. Regardless of what information is provided by the Federal Reverse on Wednesday, it will definitely affect the price of Gold for the balance of the year and into January.

Last week, Gold closed at $1,798 per ounce, virtually unchanged for the week. However, during last week, Gold reached a low of $1,765 and a high of $1,803, as it continues to build a firm base for the next rally. During last week, the Gold price did not take any direction from the U.S. Dollar Index or 10-Year Treasury interest rates because they traded in a very narrow price range.

Looking at the fundamentals for the Gold price, they continue to be highly bullish. Demand for the physical metal continues to soar, see article above (Central Banks Maintain Their Appetite For Gold). As you can see, many of the world’s largest Central Banks are adding sizeable amounts of Gold to their reserves. And without any availability of Russian Gold, many of the world’s mints and precious metal fabricators are having difficulty sourcing .999 Gold supplies.

Today: Gold is trading today in a thin $10 High/Low range between $1,782 and $1,792 while it awaits direction tomorrow and Wednesday. The November consumer price index will be released on Tuesday, and Fed policymakers meet Tuesday and Wednesday, with the rate decision due on Wednesday.

The Silver rally continues higher, up another 2% last week, closing at $23.66 per ounce, up $0.46 for the week. Physical demand for Silver is off the charts. Just look at the imports for India. Last year, India imported about 4,500 tons of Silver compared to over 8,000 tons by the end of November 2022. By year end, India’s Silver imports could be up 100% to record levels. See article above (Western Vaults Drained Of Silver To Meet Soaring Indian Demand).

The sharp rally in the Silver price, compared to Gold, has driven down the Silver-to-Gold ratio. On October 14th, the Silver-to-Gold ratio was 91.25-to-1. Now it has dropped to 76.35-to-1. That is an extraordinary increase and the lowest ratio of the year. If Silver can build a firm base between $23-$24, it will give it the fuel needed to break above the key $25 per ounce resistance level by early next year.

Today: As Gold sold off in early trading today, Silver tested its $23 per ounce support level, reaching a low of $23.09. After Silver’s recent sharp increase, it's important to stay above the key support levels, building a firm base.