Labor Day may mark the symbolic close of summer on Wall Street, but this year it could also signal the start of a long-awaited breakout in precious metals. After months of sideways trading, both gold and silver flashed bullish signals last week that point to a potential rally into year-end.
Tickers: $PNPN, $PNPNF
Fed Signals and Inflation Data Provide Support
Gold’s move higher has been supported by dovish tones from Fed Chair Jerome Powell at the Jackson Hole symposium and a softer inflation reading in July. The core PCE Price Index rose 2.9 percent year on year, still above the Fed’s 2 percent target but aligned with expectations. Markets interpreted the data as leaving the door open for a September rate cut, which provided relief for metals.
Technical Picture: Breaking the $3,500 Barrier
COMEX gold futures broke out of a multi-month triangle pattern mid-week, then followed through with a close above the $3,500 resistance level on Friday. This marked the upper boundary of the Summer 2025 range, a meaningful technical shift.
One caveat is volume. Trading was muted, likely a function of the Labor Day holiday and thin desks in New York, with European and Asian markets already closed. Sustained momentum next week, when liquidity returns, will be important to validate the move.
Spot gold mirrored the futures breakout, though a decisive push above $3,500 would offer further confirmation. In Europe, gold remains capped below €3,000, another technical level that, if breached, could add weight to the bullish case.
Broader Context: Metals Enter a Seasonally Strong Period
Historically, September through December is one of the strongest seasonal windows for gold, supported by Indian wedding season demand, year end portfolio positioning, and in years like this, monetary policy inflection points. Silver often outperforms gold during strong advances as traders increase risk exposure across the metals complex.
Mining equities have lagged in recent months but tend to respond aggressively once bullion’s breakout is confirmed. This makes post holiday trading critical, not just for metals themselves but for the broader mining sector.
Power Metallic Mines: Positioned Across Precious and Critical Metals
One Canadian junior to watch is Power Metallic Mines ($PNPN / $PNPNF), advancing the Nisk Lion polymetallic project in Québec. The company recently expanded its land package by more than 300 percent to over 212 square kilometers following the acquisition of 167 km² from Li FT Power. Drilling is fully financed with a 100,000 meter program scheduled through 2026, targeting high grade zones already intersected at both the Lion and Nisk East areas.
Beyond Québec, Power Metallic was awarded an exploration license in Saudi Arabia’s Jabal Sayid belt, a region with established copper production and growing international investment. This geographic diversification could broaden the company’s opportunities.
Importantly, the Nisk Lion project hosts a suite of metals that includes copper, gold, silver, nickel, and PGEs (platinum group elements). This mix gives Power Metallic exposure not only to potential bullion strength but also to the broader demand for critical and strategic minerals that governments in North America, Europe, and Asia are prioritizing. The recent board appointment of former Canadian Minister Seamus O’Regan adds policy and capital markets experience.
Takeaway
The technical setup for gold is the strongest it has been since April, with breakouts on both futures and spot markets pointing to potential follow through. While volume confirmation remains necessary, the setup suggests that precious metals may have entered a new phase of strength.
If sustained, this momentum could benefit miners, including polymetallic explorers like Power Metallic, as investors reallocate toward companies positioned across gold, silver, and critical metals.
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