Source: Golden Ten Data
Gold, silver, and platinum have been rising so far this year, and some strategists believe these precious metals will rise further in the coming months.
The prices of gold, silver and platinum have been rising so far this year, and some strategists say these precious metals are likely to continue to reach record highs in the coming months.
Precious metals prices rose sharply on Wednesday. Earlier, lower-than-expected inflation data released by the US increased the possibility that the Federal Reserve will cut interest rates in the near future. Affected by this news, spot gold closed at a three-week high on Wednesday. Silver prices hit a three-year high, while platinum climbed to a nearly one-year high.
Gold has been hitting record highs in recent weeks. Saxo Bank strategists said in a recent research report that the price of gold may soon test the level of 2,400 US dollars, silver may rise to a high of 30 US dollars, and platinum has the potential to rise to 1,130 US dollars.
The Danish bank said on Wednesday that its “Year of Metals” theme has continued to gain momentum in recent weeks, and said it has a soft spot for gold, silver and bronze.
Additionally, analysts at ROTH Capital Partners expect gold and silver prices to rise further in the next few months. JC O'Hara, chief technology strategist at ROTH Capital Partners, said in a research report released last Sunday:
“It now appears that the price of gold is expected to rise and break through the recent high set in April. We set a technical upward target for gold at $2,600.”
Regarding the silver price, O'Hara said that if the silver price can break through $30, “there is little resistance until the $35-37 area.”
In times of financial uncertainty, gold is generally regarded as a “safe haven” asset and has been on the rise since the end of 2022. Despite high interest rates, the US dollar is relatively strong.
The price of gold and silver is often inversely related to interest rates. Higher interest rate environments usually hurt demand for gold and silver because precious metals do not pay interest, making them less attractive compared to interest-bearing investments such as bonds.
However, not everyone expects precious metal prices to continue to strengthen in the coming months. Dutch International Group commodity strategist Ewa Manthey said in a research report published earlier this month, “As the Federal Reserve continues to take a cautious approach and geopolitical factors are incorporated into current prices, the price of gold may weaken this quarter.”
Manthey said that the Dutch International Group expects the average price of gold to be around 2,250 US dollars per ounce in the second quarter, and the average price in 2024 is 2,218 US dollars per ounce. The bank previously said that the price of gold may peak at an average of 2,300 US dollars in the last three months of this year.