Gold and silver have experienced significant volatility recently, with gold experiencing swings of more than 12% within short trading periods—an occurrence that’s rare and reminiscent of cryptocurrency behavior. Analyst Tom Yeung highlights that historically, recoveries in gold prices post-12% declines have been modest within 120 days, but over longer periods (360 days), both metals often recover their highs plus additional gains.
Meanwhile, a report from The Wall Street Journal reveals that the U.S. budget deficit is expected to worsen, potentially exceeding $3 trillion by 2036, leading to higher federal interest costs that could consume 26% of federal revenue. CBO Director Phillip Swagel warns that the fiscal trajectory is unsustainable, reinforcing the case for holding gold as a hedge against inflation and economic instability.
In addition, Jonathan Rose is bullish on copper, noting substantial demand from AI data centers. He highlights POET Technologies Inc. as a promising investment opportunity amid growing infrastructure needs driven by technology. POET is involved in developing optical engines that could revolutionize data communication.
