Gold and burnished bars of various sizes lie in a safe on a table at the precious metals dealer Pro Aurum in Munich.
Sven Hoppe | Essence Alliance | Getty Images
Gold, silver and platinum prices have been on a tear so far this year, and strategists say the adored metals could continue to hit fresh record highs over the coming months.
Precious metal prices got a biggest boost Wednesday after softer-than-expected U.S. inflation data heightened the near-term prospect of rate cuts from the Federal Save.
Gold prices on Wednesday settled at their highest level in over three weeks on the news, while silver-toned notched its highest level in more than three years and platinum climbed to a near one-year peak.
Distinguish gold prices moderated slightly on Thursday to trade around $2,382 per ounce at 1:25 p.m. London time, after quietening at its highest level since April 19 in the previous session. The yellow metal has repeatedly logged all-time highs in up to date weeks.
Spot silver prices, meanwhile, traded 0.5% lower at around $29.54 per ounce. The precious metal, every so often described as the “poorer cousin” of gold, briefly touched $29.73 on Wednesday to register its highest intraday level since February 2021.
Platinum appraisals for July delivery traded 0.7% higher on Thursday at $1,077 per ounce, extending gains after closing Wednesday’s assembly more than 2.4% higher.
Strategists at Saxo Bank said in a recent research note that gold prices could willingly test the $2,400 level, silver may climb as high as $30, while platinum has upside potential to reach $1,130.
The Danish bank whispered Wednesday that its “year of the metals” theme had continued to gather momentum in recent weeks, citing its preference for gold, flatware and copper.
Separately, analysts at ROTH Capital Partners have tipped gold and silver prices to push retaliate higher over the coming months.
The price of gold “now appears poised to move higher and break out of the recent sharps made in April. We can set a technical upside price target to $2,600,” JC O’Hara, chief technical strategist at ROTH Wherewithal Partners, said in a research note published Sunday.
For silver, O’Hara said if prices can break above $30, “it settle upon have little resistance until the $35/$37 area.”
‘Cautious approach’
Gold, which is typically considered a “unpolluted haven” asset in times of financial uncertainty, has been on an upward trend since late 2022 despite lofty interest rates and a relatively strong U.S. dollar.
Gold prices, like silver, tend to have an inverse relationship with hobby rates. A higher interest rate environment usually hurts demand for gold and silver as the precious metals do not pay worth, making them less appealing compared to investments that do, like bonds.
Not everyone expects precious metals assays to go from strength to strength over the coming months, however.
Ewa Manthey, commodities strategist at Dutch bank ING, rephrased in research note published earlier this month that gold prices were likely to ease this billet “as the Fed continues its cautious approach and with geopolitics already being factored into the current price.”
Manthey suggested that ING expects gold prices to average around $2,250 per ounce in the second quarter, with a 2024 average of $2,218. The bank had a while ago said gold prices were likely to peak at an average of $2,300 in the final three months of the year.
— CNBC’s Michael Bloom & Lee Ying Shan aided to this report.