It was a big week for gold, as prices for the yellow metal advanced toward new highs for the year. The gold market is putting in a 3.0% gain this week to trade at $1,345 an ounce.

Gold does face some formidable multi-year resistance in the $1,350 to $1,375 area. But if it can clear that hurdle and then blow through $1,400, it may be off to the races.

Turning to the white metals, silver has a lot more work to do get back on bullish technical footing. Silver’s price performance has lagged behind gold’s so severely that it trades at its biggest discount to gold in nearly 30 years. It could be a once-in-a-generation opportunity to buy silver on the cheap.

Silver prices currently come in at $15.10 an ounce after rising 3.1% since last Friday’s close. Platinum is up 1.3% this week to trade at $807. And finally, palladium is putting in a weekly gain of 2.8% to trade at $1,374 per ounce as of this Friday morning recording.

Metals markets are benefiting from a selloff in the U.S. dollar. A weakening dollar could become a larger trend as indicators point toward a near certainty of Fed rate cuts in the months ahead.

Earlier this week St. Louis Federal Reserve President James Bullard gave a speech suggesting the central bank would need to cut rates soon. Bullard cited slower economic growth, escalating trade conflicts, low inflation, and falling long-term bond yields.

Futures markets now suggest greater than 90% odds of a rate cut in the next year. Market expectations are effectively forcing the Fed’s hand. Perhaps it’s a case of the tail wagging the dog, but Fed policymakers now have little choice but to slash rates.

Of course, Jerome Powell and company have the technical ability to raise or lower the Fed funds rate at will. But in practice, they will almost always defer to markets when those markets are sending a loud and clear message.

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