Economic Insights: Rate Cuts and Market Liquidity Prospects

Tom Bodrovics welcomes Florian Grummes to the show. Florian Grummes is Financial Analyst, Advisor, and Founder & Managing Director of Midas Touch Consulting. The discussion centers on the current state of gold and silver markets, highlighting a period of consolidation following a strong rally. Grummes explains that gold has been trading in a range between $3,200 and $3,400, which he considers a healthy and bullish consolidation after a significant price increase from $2,000 to $3,500 over the past 14 months. He anticipates more market movement in September and October as traders return from summer holidays.

Central bank buying remains a crucial driver for gold prices, with emerging markets like China and India continuing to diversify away from the US dollar. Grummes believes this trend could continue for five to ten years, driven by geopolitical uncertainties and a strategic shift in global financial dynamics. The Shanghai Gold Exchange has become increasingly prominent, potentially challenging Western pricing mechanisms for precious metals.

Regarding silver, Grummes notes a more measured approach to price movement, which he views positively. He suggests the market is building momentum more sustainably, increasing the likelihood of breaking through the $50 resistance level and potentially continuing higher to $55-$75. The discussion also touches on mining stocks, which Grummes sees as undervalued and potentially poised for significant growth. He references the Dow-to-Gold ratio as an important long-term indicator, suggesting that precious metals are likely to outperform traditional stocks in the coming years.

Looking ahead, Grummes provides price targets for the end of 2024: approximately $4,000 for gold, $50 for silver, and potentially $150,000 for Bitcoin. He expects a strong final quarter across markets, with potential rate cuts and continued liquidity in the financial system.

Timestamps:
00:00:00 – Introduction
00:00:40 – Gold & Seasonality
00:03:00 – Volatility this Fall?
00:06:28 – Eastern Buying Season?
00:09:40 – Central Bank Buying
00:13:24 – Western Pricing Power
00:16:32 – Silver and Stable Pricing
00:20:23 – Gold Support & Resistance
00:24:14 – Silver Previous ATHs
00:27:28 – Topping Technical Signals
00:31:23 – Website T.A. Buy Gauge
00:32:53 – Miners & Maturing Markets
00:35:30 – ReMonetizing Gold & Fed
00:40:58 – Dow To Gold Ratio
00:46:30 – Bitcoin & Stablecoins
00:49:20 – Price Targets End 2025
00:50:55 – Fall Rate Cuts or Q.E.
00:52:12 – Wrap Up

Guest Links:
Website: https://www.midastouch-consulting.com
LinkedIn: https://www.linkedin.com/in/floriangrummes/
X: https://twitter.com/FlorianGrummes
Substack: https://substack.com/@midastouchconsulting
Seeking Alpha: https://seekingalpha.com/author/florian-grummes
Telegram: https://t.me/MidasTouchConsulting
Facebook: https://www.facebook.com/Midastouchconsulting
Free Newsletter: http://eepurl.com/d5Euf

Florian Grummes is an independent financial analyst, advisor, consultant, mentor, trader & investor as well as an international speaker with more than 30 years of experience in financial markets. 
 
Florian is the founder and managing director of his company Midas Touch Consulting, which is specialized in trading & investments as well as consulting, analysis & research with a focus on precious metals, commodities and digital assets.

Via Midas Touch Consulting he is publishing daily and weekly gold, silver, bitcoin & cryptocurrency analysis for his numerous international readers. Florian is well known for combining technical, fundamental/macro and sentiment analysis into one often accurate conclusion about the markets.