USA (Washington Insider Magazine)— The price of silver has risen to its highest level since 2013, reaching $31.49 per ounce last Friday. This surge comes due to growing expectations that the US Federal Reserve may reduce interest rates this year, boosting demand for precious metals.
Gold Also Near Record Highs
Gold ended last Friday at $2,415.22 per ounce, very close to the historical highs it set on April 12, at $2,431.52. Analysts credit the spike to softer-than-expected macroeconomic data from the United States, which has spurred speculation about the Fed’s likely interest rate cuts.
Analysts’ Perspective
Analysts from Julius Baer suggest that the anticipation of lower interest rates has renewed interest among Western investors in safe-haven assets like gold and silver. They believe this could be the missing incentive for a substantial return to these markets.
Asian Market Influence
The dynamics of the gold market continue to be heavily influenced by Asia. Experts note that the region’s willingness to pay for gold as a hedge against economic and geopolitical risks remains strong. Despite record prices, physical deliveries from the Shanghai Stock Exchange increased in April, and jewelry retail sales have been resilient.
China’s Central Bank Activities
According to Infobae, the gold purchases by the People’s Bank of China represented at least between 30 and 50% of the total purchases made by central banks, which in the opinion of these experts reflects their desire to depend less on the dollar. US.Analysts believe that the risks to gold and silver prices are skewed higher, implying that gold may resume its record-breaking trend following a temporary halt.
Demand from China and India
Jupiter management company analysts report sustained record demand for gold from China and significant silver flows into India The recent rise of these metals has coincided with rising physical demand, mainly from China and the Middle East. Popular physical ETFs have received inflows in recent weeks, notably silver, showing a shift in investor sentiment toward precious metals.
