The ascent of gold, silver, and platinum prices this year has captivated investors, and market analysts suggest the rally may not be over yet. The precious metals received a significant boost recently as softer-than-expected U.S. inflation figures raised the likelihood of interest rate cuts by the Federal Reserve.
Gold prices reached their highest point in weeks following this news, while silver achieved a peak not seen in over three years, and platinum neared a one-year high. Although gold prices have eased slightly since, the recent surge indicates sustained momentum.
Market experts at Saxo Bank have projected that gold prices could soon test the $2,400 mark, silver could reach $30, and platinum may have the potential to hit $1,130. The bank’s “year of the metals” theme has gained traction, highlighting their preference for gold, silver, and copper.
Analysts at ROTH Capital Partners share similar optimism, suggesting that gold and silver prices may push even higher in the coming months. Their technical analysis points to potential upside targets of $2,600 for gold and $35-$37 for silver, should key price levels be surpassed.
A Haven in Uncertain Times
Despite high interest rates and a relatively strong U.S. dollar, gold, often regarded as a “safe haven” asset, has been on an upward trajectory since late 2022. The inverse relationship between gold and interest rates means that a higher interest rate environment typically dampens demand for gold, as it does not offer interest payments like bonds.
Not All Sunshine and Rainbows
However, not all market observers anticipate an uninterrupted upward trend for precious metals. Some analysts, such as Ewa Manthey at ING, believe that gold prices may moderate in the coming months as the Federal Reserve maintains a cautious approach and geopolitical factors are already priced in.
ING forecasts an average gold price of around $2,250 per ounce in the second quarter and a 2024 average of $2,218. The bank had previously suggested that gold prices would likely peak at an average of $2,300 in the final quarter of the year.
