Wednesday, Gold rose to a 9-yr high as an escalation in US-China tensions fueled demand for safety, while silver followed bullion’s rally to hit a near 7 yr high on expectations of a recovery in industrial demand.
Spot gold hit its highest since September 2011 at 1,870.01, nearing its all-time peak hit the same month.
By 2:03p EDT (1803 GMT) spot gold rose 1.3% to 1,865.61, while US gold futures closed 1.2% higher at 1,865.1 oz.
Low interest rates, a softening USD and a wave of stimulus to cushion virus chaos hit economies have driven prices of bullion, widely used as insurance against rising uncertainties, it is 23% higher YTD.
Silver rallied 6.4% to 22.68 oz hitting its highest since October 2013 at 23.03.
Prices have risen over 17% so far this week, which some analysts see as the start of a Bull run powered by low interest rates, resurgent investment demand, disrupted production and a recovery in industrial consumption.
“Silver shares some ‘safe haven’ attributes with gold but is inherently more leveraged to global growth and manufacturing recovery. Both however are about to breakout as gold breaks through the 1900oz market with silver following the same pattern.”
“Remember as the US economy continues only in a slightly recovery pattern, both gold and silver will further accelerate in value, due also in part because of the weakening US Dollar and uncertainty of a global recovery because of Covid-19. The real question here is will there be a phase 2 or even a Phase 3 of the pandemic which until a proven vaccine is proven, world economies will continue to be held hosted, causing further increases is gold and silver as more safe investments, ” Economist Bruce WD Barren said in an interview.
Economist Bruce WD Barren said in an interview.
A rebound in global PMIs, particularly in China, has accelerated the relative outperformance of silver Vs gold this Quarter, Mr. Barren added.
Palladium fell 1.3% to 2,129.25 oz and platinum rose 2.6% to 904.97 oz having hit its highest since 27 February at 918.38 oz.
Have a healthy day, Keep the Faith!