Gold and silver still look well poised to push to further highs this year, with both metals seeing gains in the past week, and gold now back above $2,400 per ounce.
Lower-than-expected US CPI figures released yesterday (3% y-o-y versus 3.1% expected) have given further hope of rate cuts in the US, and driven gold back up above $2,400 for the first time since May. Gold is up 1.6% just this week in USD, as the dollar weakens on rising hopes for the first rate cut from the Federal Reserve.
Silver has seen more mixed fortunes this week, with some large swings up and down. Silver has pushed above the key $30 per ounce threshold, and yesterday afternoon, following the CPI figures, climbed as high as $31.78 but has since fallen sharply back to $30.77 at the time of writing. Silver has plenty of potential behind it, but with such quick spikes upward, continues to come under selling pressure. The general trend remains positive however, and further gains are forecast for silver if it can continue to steadily rise in price.
News that China reported no gold reserve purchases for a second month caused a price dip on Monday, but with countries like Uganda, Nigeria, Serbia and Czechia all increasing reserves there is still plenty of support for gold from central banks in addition to the investment, and safe haven demand currently being seen.
With the first US rate cut now expected in September, and the US election in November, we are nearing what will likely be a key few months for gold and silver after an already impressive rally in the spring that both metals have held onto remarkably well. Gold's current record of $2,450/£1,954 is well within reach to be beaten by the end of 2024.
