Precious metals have enjoyed yet another jump in prices, with gains on Friday continuing into trading this morning.
After consolidating in the low $2,300 range for a few weeks, gold caught some further buying momentum last week on a weaker USD and continued demand in Asia. Having climbed over $100 in just a week, gold set a new intra-day all-time high in dollars this morning, reaching a peak of $2,450.85.
Gold has since pulled back slightly after the stellar open, but remains above $2,400, and a close tonight above $2,414.81 will be another record broken. The weaker dollar has lessened the gains somewhat in other currencies, but still leaves gold above £1,900 and €2,200.
If gold has performed well, silver has been exceptional, soaring on Friday afternoon to break $30 and continue on past $31 to score its highest price since 2012. Silver reached a peak of $32.54 this morning, but has seen some selling pressure since, pulling it back down to around $31. Considering at just the start of this month, silver was just $27, today’s prices represent an impressive 15% gain.
In GBP/EURO this puts silver at around £24.50/€28.50, the highest since 2011 for those currencies. The gold-silver ratio has also fallen to 76 after languishing above 80 for the past few weeks. 76 is the lowest the ratio has been since December 2022, but still has some way to go to reach the 60s seen in 2021 and 2016. Silver’s performance has put some excitement into the market, and if it can hold above $30 will be well-positioned to test all-time highs.
Such a quick rise will prompt selling pressure of course, so some dips along the way are expected, but gold and silver are proving their popularity, particularly in the east where countries like China (for gold) and India (for silver) are driving demand far higher.
