Gold futures exploded through resistance near $2,560, confirming a breakout with a medium-term price target near $2,800. Given the risks currently surrounding the global economy, silver could stand out as a potential low-cost safe haven for investors who are seeking stability. Its attractive price point compared to gold also makes it appealing, as more investors can afford it. Advocates of investing in gold call it a “safe haven,” arguing the commodity can serve to diversify and balance your investment portfolio, as well as mitigate possible risks down the road. Some also take comfort in buying something tangible that has the potential to increase in value over time. However, it’s crucial to approach gold investment with a balanced perspective.

Breaking News:

1. A stronger dollar raises the cost of dollar-priced commodities for foreign buyers, which, in turn, dampens demand and pushes palladium prices down.
2. Fundamental factors play an important role and need to be carefully analyzed.
3. The ECB cut rates by .25% Thursday, trimming growth expectations for 2024 and beyond.
4. According to the statistics (since 1973), the long-term correlation between the U.S. dollar index and the gold prices is -0.6 so this link is quite strong.

Select industrial metals could also experience best blue chip stocks to buy in 2021 sharp rallies, driven by a combination of long supply cycles and increased demand related to energy security and decarbonization efforts. Overall, our strategists expect a total return of 5% for the GSCI Commodity Index in 2025, down from the 12% total return it expects for this year. Ongoing geopolitical conflict also plays a crucial role in gold’s appeal — and the potential for it to grow in price over the coming months.

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China’s manufacturing Purchasing Manager’s Index (PMI) has been weak in the second half of 2021 while Japan’s PMI reading has been well below the global average. Both countries are major users of products containing silver, such as electronics, solar panels, and photographic equipment. Near-term prospects for silver largely rest on the strength of the global economic recovery, which is being tempered by a resurgence of COVID infections, particularly in Europe and the United States. The level of US interest rates is an important driver of future gold prices. When investing in gold, the investor is faced with the opportunity cost of gold – a non-interest bearing asset.

As tensions persist in various parts of the world and concerns about U.S. debt levels grow, gold’s status as a safe-haven asset is likely to be reinforced. This could lead to increased demand from both institutional and retail investors seeking to diversify their portfolios and protect against potential market volatility. The relationship between interest rates and gold prices has historically been inverse, with lower rates typically supporting higher gold prices.

How do you forecast the price of gold?

BowFin Capital’s first investment was into Dub, a fast-growing stock trading app that lets people either copy the investments of top traders or become investors whose trades can be followed or duplicated. Gold reached its peak in October currency converter calculator usd/sgd and is now undergoing an intermediate decline, which could see prices drop toward $2,450 in December. As GoldSilver Founder Mike Maloney points out, the only way he’ll be wrong about gold and silver is if they stop printing, which isn’t likely to happen anytime soon. Historically, silver tends to start slowing in bull markets, often lagging behind gold.

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On the supply side, South African mine production has rebounded strongly and has more than offset outages at two Russian mines. Platinum and palladium prices are expected to fall in 2022 due to the continuing semiconductor shortage. Recent gains for the precious metal are largely credited to ongoing economic uncertainty, geopolitical tensions and strong demand from central banks around the world. Investors have been keeping a watchful eye on gold’s price trends over the past several months — and for good reason. The precious metal has been on an impressive bull run since the start of 2024, with its value reaching new record highs multiple times so far this year. This trend began in early March, with gold prices surging to $2,160 per ounce, up 8% compared to the previous record in December 2023.

Gold is nearing our $2,800 target, with the potential for further gains into year-end. Historically, during the last two Fed rate-cutting cycles, gold surged approximately 40% following the initial cut. Last week, I wrote Gold Could Collapse or Challenge $3000 in November.

In markets like the U.S., there’s also particular concern about the health of the job market. Last week’s larger-than-usual half-point cut by the Federal Reserve signals a new focus on slowing employment numbers, and basic requirements to become a python developer more rate cuts are expected before the end of the year. And such action arrives in the midst of a tumultuous election year — which could prove crucial to economic policy in the road ahead, too. Industrial demand for silver, which had been supportive of prices, has waned.

Over the last couple of years, central banks across the globe have dramatically increased their gold holdings. This shift in central bank behavior has altered the traditional dynamic between gold prices and interest rates, potentially providing a more robust floor for gold prices even as rates fluctuate. Platinum and palladium prices have fallen sharply since early May, driven by the slump in vehicle production. The shortage of semiconductors has hampered global vehicle production, in turn causing a sharp decline in autocatalyst demand. Autocatalysts account for one-third and four-fifths of platinum and palladium demand, respectively. Both metals are used in catalytic converters of car engines to reduce emissions.

Silver’s Industrial DemandSilver’s unique chemical composition makes it an outstanding electrical and thermal conductor, surpassing other metals in efficiency and effectiveness. Electric vehicles use almost twice as much silver as internal combustion engines… Plus solar panel installations, and the 5G/mobile phone technology sector, all heavily rely on silver.