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Gold Under Pressure, Oil Rising, and the Race for Critical Minerals

In this week’s Weekly Perspective, David Morgan examines mounting pressure on precious metals as gold fell below $4,000 and silver declined toward $54. Surging oil prices, renewed inflation concerns, and expectations of higher interest rates weighed on metals and mining stocks. Rising energy costs also threaten mining profitability, reinforcing the importance of strong balance sheets, cost control, and operational discipline.

Morgan highlights growing concerns over the debt financing the AI boom and the approaching January 2027 restrictions on certain Chinese-sourced critical minerals used in U.S. defense production. These restrictions underscore the importance of securing domestic and alternative supply chains, while creating potential opportunities for mining companies capable of bringing viable projects into production.

He also examines the erosion of the dollar’s purchasing power and the differences between gold and Bitcoin as stores of value. Despite near-term market volatility, Morgan maintains that energy security, resource security, and confidence in money remain fundamental investment concerns. His message to investors is to maintain physical precious metals as a foundation while carefully evaluating mining companies based on their assets, financial strength, operating costs, and ability to execute.

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