Gold and silver prices have encountered some resistance at recent highs, but one market analyst said it was all part of the precious metals consolidation process and prices were moving higher.

Earlier on Thursday, gold tested resistance at $2400 an ounce as inflationary pressures abated. At the same time, silver successfully pushed up to $30 an ounce. However, investors continue to take profits because the Fed has yet to promise to ease interest rates this year.

Michele Schneider, director of trading education and research at MarketGauge, said that while the Fed was reluctant to signal the start of a new easing cycle in the short term, it was clear that interest rates would not rise any more. This ultimately provides solid support for precious metals, she added.

However, Schneider said the market debate over US monetary policy was just an episode for gold, silver and mining companies. She explained that geopolitical uncertainty supports rising inflation and weak economic activity. Although the core CPI has dropped to 3 in the United States10playvideopokerfreeAfter .6 per cent, the market breathed a sigh of relief, the first decline in six months, but Schneider said many factors would still push up consumer prices and drag down economic growth, creating a stagflation environment. "economists are still mistaking inflation," she says.10playvideopokerfreeThe inflation we see is very subtle, which creates a challenging environment in which traditional inflation indicators may not tell the whole story. " She says the changing geopolitical landscape is the biggest inflation threat and provides the greatest support for gold and silver. Earlier, US President Joe Biden imposed a 100% tariff on electric cars imported from China. The US government has also imposed higher tariffs on battery technology, solar panels, semiconductor microchips and other key minerals.

Schneider points out that the United States is trying to maintain its independence through these steps. But she added that this may not be suitable for long-term growth.

She said: "10playvideopokerfreeWe know that this road to independence is not necessarily good. The country is isolating itself, putting the dollar and bond markets at risk. We have seen countries that are inconsistent with the United States selling treasury bonds and buying gold, and countries are accumulating more gold because they want to protect themselves. "

At the same time, she said Biden's plan to support domestic manufacturing would also raise consumer prices as companies face higher wages as domestic production increases.

She said it was only a matter of time before a slowdown in consumer activity dragged down the economy in the face of rising costs.

"I think we are rapidly moving towards stagflation, which is when you want to hold assets such as gold and silver," she said. " As for where gold prices will go, Schneider said that the price of precious metals seems to be forming an inverted head-shoulder shape. Breaking through $2400 could push gold prices higher to $2600, she added. At the same time, she said the strength of silver could push the price of silver above $35, or even as high as $40.

As for how investors should build safe-haven positions in precious metals, she says gold, silver and mining are now equally weighted, accounting for about 15 per cent of her total portfolio.

"if people want to enter the metal industry now, I would slightly prefer silver and mining because they have growth potential," she said. "

Schneider said investors could also diversify their exposure to commodities, including important energy assets such as uranium, copper and natural gas.

"people are just beginning to realize how dependent this artificial intelligence revolution is on energy, so you need to keep a close eye on these commodities," she said. "

May 17, 10, Beijing time10playvideopokerfree50 spot gold at 2376.52 US dollars per ounce.