Gold prices at record peak, Silver near highest in four months: Top updates

Gold rose to a record high as weak US data bolstered the case for deeper rate cuts while Silver was near the highest in four months. Prices of gold gained as much as 0.3% to above $2,665 an ounce following a report showing US consumer confidence this month fell the most in three years. Silver surged 4.6% in its biggest daily gain in four months.

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Zhong Liang Han, an analyst at Standard Chartered Plc, said as per Bloomberg, “The main driver for silver in the last few weeks has been the gold rally — which got another boost yesterday from higher rate-cut expectations following the weak consumer confidence report. However, the rally in industrial metals following China’s broad stimulus package was the key driver behind the next leg of the up-move in silver.”

This year, Gold has now surged almost 30% while silver has risen 35%. The yellow metal has also been supported by strong central bank purchases and heightened geopolitical tensions.

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Spot gold reached a record high of $2,665.25 an ounce before being up 0.2% to $2,662.77 as of 10:34 a.m. in Singapore. Silver is getting attention given the sharp rally in gold, especially as investors look for catch-up buying opportunities, Joni Teves, a precious metals strategist at UBS Group AG, said, adding, “The move in industrial commodities is likely also providing an additional boost. Our bullish outlook for silver is unchanged; we think it can outperform in this environment of rising gold prices, Fed easing and forecasted silver market deficits.”

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Silver dipped 0.5% in Singapore to $31.9435 an ounce. Palladium and platinum declined.