Precious Metals Shine: Gold Hits Record High, Silver Sees Substantial Gains
The price of gold continues to hit unprecedented highs, with one troy ounce of .999 fine gold now trading at $2,298. Silver is also beginning to ride the wave of gold’s recent uptrend, with its value climbing 3.64% on Wednesday surpassing the $27 per ounce mark.
Gold’s Historic Ascent Continues While One Analyst Eyes Potential for Future Pullback
Lately, precious metals have experienced significant increases, and gold has set a new record high once again on April 3. The current price for one troy ounce of gold stands at $2,298, marking a 0.76% increase over the past 24 hours.
Gold price on Wednesday, April 3, 2024.
According to five-day metrics, gold has appreciated by 5.48%, with a notable 10.34% increase over the past month. As gold reaches unprecedented heights, the value of equities and cryptocurrency assets has fallen sharply in the last two days.
Silver price on Wednesday, April 3, 2024.
Moreover, analysts from Bank of America, under the direction of Michael Widmer, anticipate even further increases in prices. Unlike stocks and bitcoin, Fed rate cuts don’t seem to matter. “We had previously proposed a $2,400/oz price estimate if the Fed cut rates in 1Q24; we commit to that estimate for this year, even if rate cuts come later,” Widmer stated.
Gold’s companion, silver, too, has posted significant gains against the US dollar lately. In fact, its increases have outpaced gold’s recent days. On Wednesday, for example, silver advanced by 3.64% and has risen 17.45% in the last 30 days. Nonetheless, Kathleen Brooks, an analyst at broker XTB, pointed out that “warning signs are flashing.”
“At this stage it is hard to see the gold price coming under severe downward pressure, but we would point out that open interest on gold contracts appears to have peaked and the gold price is now 15% above its 200-day simple moving average,” Brooks stated this week. “This suggests that it is at extreme levels and could be due a pullback.”
What do you think about the recent rise in gold and silver prices? Share your thoughts and opinions about this subject in the comments section below.
