Editor’s Note
This article discusses the recent uptick in gold and silver prices, driven by bargain hunting. Experts caution that near-term volatility is likely to persist, influenced by global uncertainty and industrial demand.
Gold and silver prices are rising again, but the volatility in the rates of the precious metals is likely to persist in the near-term, feel commodity experts and analysts. Both gold and silver have risen, almost exponentially, in the last year. While gold rises in times of global uncertainty, silver is increasingly seeing higher demand from the industry, hence prices have been rising. However, tempered expectations of a US Federal Reserve rate cut, and profit booking at higher levels has meant that gold and silver prices have been dipping from their all-time highs. The long-term bull run in both gold and silver is intact, feel analysts.
Emkay Wealth has said that the extent of additional gains in gold and silver prices will largely hinge on global economic conditions and policy direction.
Gold prices have been on a consistent upward trajectory for more than eighteen months, driven largely by expectations that the US Federal Reserve may move toward interest rate cuts, which in turn could weaken the US dollar. Historically, periods marked by declining interest rates and a softer dollar have provided favourable conditions for precious metals. Alongside this, steady purchases by central banks and large institutional investors since 2022 have offered sustained support to prices and helped reduce downside pressure.
From a broader market-cycle standpoint, both gold and silver appear to have moved out of a prolonged consolidation phase that lasted close to a decade and entered a structural bull phase roughly a year ago. An assessment of price trends over the past thirty years indicates that such breakout periods have typically continued for three to five years.
according to a report by Emkay Wealth Management.
Following a strong rally over the past year, gold and silver prices have recently experienced repeated and pronounced swings, reflecting heightened volatility in precious metals markets.
A report by Emkay Wealth Management advised existing investors to maintain their exposure to gold and silver within a well-diversified portfolio. The report suggested that any additional investments should be made gradually, ideally during phases of price correction rather than after sharp rallies.
Spot silver advanced 2.1 percent to $76.76 per ounce, recovering after tumbling 11 percent on Wednesday.