How long will gold’s record rally last?

By Metal miner

Global Precious Metals IMM (Monthly metals index) briefly missed trading, falling just a mere 0.01%. Precious metal prices experienced a streak of volatility in both directions, which kept the overall index firmly in a sideways trend. Gold prices continue to rise, while other precious metals such as palladium and silver have declined (price trends and updates covered weekly in MetalMiners newsletter). With gold prices reaching new highs, many are beginning to wonder how high prices will go before they fall.

Precious Metal Prices: Palladium

Palladium prices continue to decline, following a long-term downtrend since July 17. Even though prices experienced a brief upward movement between July 25 and August 1, this upward movement proved to be short-lived. Declining demand for palladium in the automotive sector has played a major role in lowering prices in 2024 for the precious metal.

Source: MetalMiner Outlookprecious metal prices

In the coming months, palladium prices could witness bearish pressure due to a mix of stable supply levels and sluggish demand from the automotive sector. In addition, the use of platinum instead of palladium in industrial applications could pose additional pressure on prices.

Platinum prices face bearish sentiment

Platinum prices, along with prices of other precious metals, fell month-on-month, moving away from their previous steady trend. Concerns about a global economic slowdown and weaker demand from the auto industry led to lower prices. In addition, increased platinum recycling has boosted reserves, adding further pressure on pricing.

Platinum prices are likely to continue to face bearish pressure in the coming months. The market is likely to face persistent challenges due to weak industrial demand and the potential for a global economic downturn, which could further reduce consumption. Despite a supply shortage that could provide some support, overall sentiment suggests prices can stay towards the lower end of the current range.

Silver prices rise before falling

Unlike the prices of other precious metals such as gold, the price of silver has seen wide month-to-month volatility, rising for some time before falling again. In early July, market confidence and some encouraging economic data propelled silver prices higher. But this rally did not last long. By the end of July, prices it started TO decline.

Silver is anticipated to experience more bearish sentiment in the near term. The market is expected to continue to struggle due to weak industrial demand and possible global economic slowdowns, despite bullish sentiment due to supply shortages. Analysts predict that while silver prices may rise somewhat in the near future if economic conditions improve, it may be difficult for them to go much higher.

Precious Metal Prices: Gold

Among all precious metal prices, gold has been found to be abnormal on a month-to-month basis. Gold prices rose to all-time highs in July and August as geopolitical tensions and economic instability converged. Predictions that the US Federal Reserve would cut interest rates in response to weak inflation and rising unemployment pushed gold prices above $2,483 an ounce in July, setting new records.

Source: MetalMiner Outlookprecious metal prices

In early August, gold prices peaked again above $2,500 an ounce, driven by worse-than-expected US labor market statistics and rising geopolitical concerns, particularly in the Middle East.

If the Fed decides to become accommodative and lower interest rates for the remainder of 2024, analysts predict that gold prices could remain robust and even reach new highs. Strong technical indicators combined with economic and geopolitical uncertainty suggest that gold will continue to attract more investors. However, ca mARKETS react to imminent global dates and events, some turbulence is anticipated.

By Jennifer Carey

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