Is Powell About to Ignite the Next Gold and Silver Boom?
The Calm Before the Storm
Let me shoot it to you straight: we’re in the calm before the storm. Gold and silver are sitting tight, waiting on a signal from the top of the financial food chain—Fed Chair Jerome Powell. His upcoming speech at Jackson Hole may be the spark that finally kicks these metals into gear. And according to Saxo Bank’s Ole Hansen, the time for waiting might be running out.
We’ve been bouncing in a narrow range for months now. Gold’s hovering around the $2,350 mark (or thereabouts), like a car idling in neutral, engine running, waiting for the light to change. Silver’s in the same boat—solid fundamentals, but stuck in park.
Why?
Because everyone’s eyes are glued to the Fed. Investors are desperate for a clear signal. Will Powell hint at more rate cuts? Will he finally acknowledge that inflation isn’t just some “transitory” blip? Or is the Fed going to keep dancing around the truth while the middle class keeps taking it on the chin?
A Fog of Uncertainty, But Gold Loves Chaos
Ole Hansen from Saxo Bank nailed it: the markets are living in a state of “wait and see.” We've seen weaker U.S. economic data lately, but inflation’s still lingering like smoke after a fire. And despite a hotter-than-expected Producer Price Index, the market still thinks there's a good shot at a rate cut come September.
Now, here's where it gets real interesting: Treasury Secretary Scott Bessent’s been pushing for 150 basis points in cuts. That’s not a tweak—that’s a full-blown pivot. Meanwhile, folks are already whispering about who might replace Powell in May. So it’s not just rate policy on the line—it’s the whole Fed regime.
You want to talk uncertainty? That’s the kind of chaos gold thrives on.
Silver: The Sleeper Metal with a Shotgun in the Trunk
Silver's got a few more moving parts. Yes, it's tied to industrial demand—especially in sectors like solar and EVs—but it’s also a stealth play on inflation and monetary turmoil. Structural deficits are keeping a floor under silver prices, and if China ramps up stimulus or solar demand spikes again, this metal could rip higher before the average investor even sees it coming.
Speculators have been quiet lately, waiting on that macro trigger. But once they jump in, expect silver to move fast and hard.
What Could Trigger the Next Surge?
Hansen laid out four potential catalysts that could light a fire under precious metals:
- A Clear Dovish Pivot from the Fed – If Powell signals a September rate cut and a softer stance moving forward, you can bet the dollar’s going to fall. And when the dollar drops, gold and silver rise. That’s just how the machine works.
- Weak U.S. Jobs Data – Bad payrolls or job openings numbers could push the Fed into action. And if they cut rates despite lingering inflation, that’s a green light for precious metals.
- Geopolitical Shocks – Ukraine. The Middle East. All it takes is one flare-up to trigger a rush into safe havens.
- Chinese Stimulus or Solar Demand Spike – Especially for silver, this could tighten the already fragile supply-demand balance and push prices higher.
Frank’s Take
Look, I grew up in a blue-collar home where every dollar mattered. I didn’t have a trust fund or a Wall Street internship—I learned finance the hard way. And I can tell you, times like these are where people either protect their wealth or lose it chasing the wrong assets.
Gold and silver aren’t just commodities. They’re lifeboats.
The Fed is boxed into a corner. Inflation’s still gnawing away at your savings, and any rate cuts from here are basically waving the white flag. Don’t wait for the media to tell you it’s time—they’ll be late, like always. By the time your favorite financial pundit is screaming “Buy gold!” the smart money’s already loaded up.
What You Should Do Right Now
If you’re watching this unfold and wondering what steps to take, I’ve got something for you. My colleague Bill Brocius has put together a powerful, no-nonsense guide:
👉 Download “Seven Steps to Protect Yourself from Bank Failure”
This free eBook walks you through what to do before the next wave hits. Because it’s not about if—it’s about when.
And if you’re serious about protecting your wealth, make sure you’re subscribed to Dedollarize’s financial alerts and reports. I’ll keep breaking it down for you, without the Wall Street spin.
Stay sharp,
Frank Balm
