Record closing week for gold!

Week 9 concludes with optimism in the gold market, but analysts still recommend caution regarding gold next week.

Purchases of precious metals increased on Friday as production activity in the market was slower than anticipated. This also demonstrates the significant potential gold possesses.

 

Gold futures

April futures have been traded at $2095.20 per ounce, marking a 2% increase from the previous week. This is the best performance in 2024 and has resulted in a new record closing price.

Analysts do not see this uptrend supported by strong fundamental factors and believe that profit-taking and volatility could push prices back. They also add that they believe the price in the next week will be maximum $2,088 per ounce.

This analysis is also supported by economists on Wall Street, who have begun to doubt that there will be further interest rate cuts. On the contrary, perhaps the next move could be an interest rate increase, which could force down the price of gold.

The graph shows the spot price above 2075, and we also see that gold reached a record high in December, up to $2,135.60.

Silver futures

There is expected global demand for silver.

It is particularly the enormous and growing middle class in India that demands more and more silver for jewelry, but also the energy sector, the telecom sector, and the defense industry require silver for things like solar panels, mobile phones, aircraft, satellites, and weapons. Especially the latter two industries are expected to grow significantly.

The second factor affecting the silver price is the central bank lowering interest rates, something analysts expect to happen during 2024.

Analysts believe that the lower interest rates will bode well for silver, especially as demand is high. It is expected that the price will reach $30 per ounce, which will be the highest level in the past 10 years.

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     The graph shows that Silver has climbed up to the $23.00 level.