The price of gold has been rising to all-time highs; on Monday, spot gold reached a fresh peak of $2,449.89 per ounce. Prior to this past week, industrial metal copper and silver both reached multi-year highs. (Photo : by Justin Sullivan/Getty Images)
The price of gold has been rising to all-time highs; on Monday, spot gold reached a fresh peak of $2,449.89 per ounce. Prior to this past week, industrial metal copper and silver both reached multi-year highs.
Despite the fact that none of the three are at their peak right now, they are all trading close to record highs, and experts predict that prices will rise over the next 12 months. What is going to fuel both the industrial and precious metals rallies?
At the moment, spot gold is trading for $2,351.3. Yellow metal prices have continued to rise despite the US dollar's ongoing weakening and decline in value. Treasury rates, according to a recent report from ANZ. That's not all, though.
China is now the country with the highest consumer demand for bullion, having surpassed India in 2023 to become the global buyer of gold jewelry.
Data from the World Gold Council indicated that Chinese customers have also been leading the way in gold purchases, having purchased 603 tons of gold jewelry last year, a 10% increase from 2022. The WGC anticipates that this year's Chinese jewelry demand will remain high, if not greater than in 2023.
In a report published last week, UBS strategists increased their estimates for gold to $2,500 an ounce by the end of September and $2,600 by the end of the year. Stronger Chinese demand and a string of weak U.S. statistics in April, which led to some revising of estimates for U.S. economic growth, are the reasons behind the bank's optimistic prognosis. Rate reductions by the Federal Reserve.
Increased interest rates have the tendency to put pressure on gold because they make Treasuries, another safe-haven asset, more appealing to investors.
And silver, the less fortunate cousin of gold? Even while silver often takes a backseat to yellow metal in terms of pricing, the two have a favorable association, notwithstanding silver's lag.
On Wednesday, silver reached a ten-year high of nearly $31 per ounce due to a surge in investor demand and supply constraints. At the moment, one ounce is going for $31.6.
Silver has widespread industrial use and is frequently utilized as an ingredient in the production of electronics, solar panels, cars, and jewelry.
Copper saw a similar surge, peaking at $10,857 per ton on Tuesday of last week before beginning to decline. At the moment, a ton is going for $10,256.
As supply shortages worsen, red metal prices have been "well supported by supply tightness" this year, according to ANZ. Because of lower-than-expected output, the International Copper Study Group (ICSG) has lowered its supply surplus projections for the metal this year.
The content provided on MoneyTimes.com is for informational purposes only and is not intended as financial advice. Please consult with a professional financial advisor before making any investment decisions.
