Gold and silver showed no signs of slowing on Monday as investors continued to pour into precious metals.
Gold futures (GC=F) rose as much as 0.8%, hitting a new record as it hovered around a high of $2,750 per ounce. Silver futures (SI=F) rose more than 3% before the rally, briefly topping $34 an ounce, a 12-year high.
The two precious metals have outperformed the broader market, with bullion up 26% year-to-date and silver up 3.5% over the same period, compared to a 19% rise in the S&P 500 Index (^GSPC) since the beginning of the year. % rose.
Gold purchases by central banksset a record. First quarter of 2024 It has been one of the biggest drivers of the rise in precious metals this year. BofA analysts estimate that gold has surpassed the euro to become the world’s largest reserve asset after the US dollar.
Investors have also flocked to physically backed gold exchange-traded funds, with inflows rising for the third consecutive month. According to the World Gold Council.
“I think it’s lower inflation expectations and a rotation of assets that tend to do better with a more dovish Fed,” Phil Streible, chief market strategist at Blue Line Futures, told Yahoo Finance on Monday morning. ” he said.
The strategist expects gold prices to reach $2,850 by the end of the year.
Meanwhile, silver soared after rising more than 6% on Friday. JP Morgan analysts commented on recent sentiment in the London Bullion Market Association/London Platinum and Palladium market. meeting, Participants predicted the gray metal’s average price next year to be $45 per ounce.
“This bullish view is driven by a sense that silver is undervalued relative to gold, less crowded, and supported by multi-dimensional and versatile demand applications,” JPMorgan analysts wrote on Friday. “It has been done,” he said.
Silver is used in a variety of industries, from electronics to auto parts, fuel cells and solar panels. Analysts say the future for metals will be uncertain if former President Donald Trump wins the presidential election.
“While we ourselves are bullish on silver, industrial metals prices will need to continue rising into 2025 to achieve this solid silver outperformance. The situation could become complicated under hard-line measures and “China’s stimulus,” the memo said.
Ines Ferre is a senior business reporter at Yahoo Finance. Follow her on X @ines_ferre.
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