Silver has regained lustre near its two-year high

2024-04-09
Summary:

Gold prices climb for the 8th day due to central bank buying and geopolitical tensions, ignoring the strong jobs report.

Gold prices were heading for their eighth straight sessions of gains on Tuesday, pushed higher by central banks purchases and geopolitical tensions. The strong jobs report on Friday failed to sap the momentum.

China's central bank added 160,000 troy ounces of gold to its reserves in March, it said. Turkey, India, Kazakhstan and some European countries have also been buying gold this year amid still-hot inflation and war.


The percentage yield between London spot and three-month forwards has made a dip below Fed rates for weeks. Historically, that only happens on a sustained basis when rates are low or about to move sharply lower.


Meanwhile, India's silver imports hit a record high in February, officials told Reuters. The Silver Institute predicts 2024 to be a banner year for the metal, with prices potentially hitting a decade-high.


Global demand is expected to reach 1.2 billion ounces this year, which would mark the second-highest level on record, given the continued strength of industrial end-uses, and a recovery in jewelry and silverware demand.


The white metal hovered near its two-year high around $28 and outperformed its richer cousin in 2024 as some analysts had predicted, benefiting from an improving global economy in particular.

XAGUSD

Silver has decisively broken out of its long-standing trading range in April with after the formation of golden cross. That is evidence of a solid foundation of more gains despite RSI signaling a pullback.


Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

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