Gold prices continued their upward climb, hitting a record high for an eighth consecutive session on Tuesday, reaching $2,363.42 per ounce. The surge in prices is being supported by momentum-following funds and heightened geopolitical tensions.
According to Ole Hansen, head of commodity strategy at Saxo Bank, there is a strong underlying momentum in the market, with traders still following a buy-on-dip strategy. Geopolitical risks, especially related to Russia/Ukraine and the Middle East, are also providing support to gold prices as investors seek safe-haven assets.
The market is eagerly awaiting the U.S. Federal Reserve’s policy meeting minutes and U.S. inflation data scheduled for Wednesday, which will provide fresh signals on the future U.S. rate path. Despite elevated interest rates typically dampening the appeal of holding non-yielding gold, the precious metal has been resilient this month.
In addition to gold, spot silver also rose to $28.11 per ounce, its highest level since June 2021. Analysts at BofA have expressed optimism about the precious metals market, forecasting gold to rally to $3,000 per ounce by 2025 and silver to surpass $30 within the next 12 months on the back of stronger industrial demand.
Platinum and palladium also saw gains, with platinum up 2.3% to $980.9 and palladium rising 1.7% to $1,060.75. However, BofA expects palladium prices to trend lower in the longer term compared to platinum, as demand for palladium is mainly driven by auto catalysts.
Overall, the precious metals market remains upbeat, with gold prices breaking records and silver, platinum, and palladium also experiencing positive movements.
