Although the price of gold has set a historical record, the prices of both gold and silver have grown rapidly. Silver is regaining its shine.
At the beginning of August, the increase in gold price from the start of the calendar year was 18%, and for silver, it was 13%. By mid-August, this had increased to 19% and 14% respectively.
Over the past year, gold has risen by 27%, and silver by 21%. Gold reached levels of 2,490 USD per ounce, and silver – 30 USD per ounce. Over a 12-month period, the minimum price for gold is 1824.95 USD, and the maximum is 2519.45. For silver, the minimum was 20.86 USD, and the maximum 32.65 USD.
“In nominal terms, silver is cheaper, which means that the volatility of silver prices is usually greater,” says Michał Stajniak, Deputy Director of Analysis at XTB in an interview with MarketNews24. “When we have an upward trend, silver gains more than gold.”
As uncertainty about the global economy increased, fears of a recession amplified, silver began to lose more than gold, but these latest losses are not great. The silver sell-off was larger.
It is also important that over 50% of the demand for silver comes from the industry, mainly the photovoltaic sector. In the case of gold, jewelry and investment demand are of much greater importance, and demand from central banks also plays a significant role.
“It is possible that if recession fears intensify, the price of gold will remain stable, above 2,300 USD per ounce, and the price of silver will drop to 24-25 USD per ounce,” comments the XTB expert.
However, at the same time, the time is approaching for the first interest rate cuts by the Fed. Investors are already pricing in four cuts. If there is no recession, and there are indeed four cuts – it will be a situation conducive to further growth in gold prices, but also silver. The dynamics of gold and silver price increases could be similar, although volatility will remain different for both metals.
“From the level of 2,300 USD per ounce, gold could attack historical price levels,” summarizes M.Stajniak.
Source: https://managerplus.pl/hossa-na-metale-szlachetne-trwa-co-przyniesie-przyszlosc-dla-zlota-i-srebra-52355
