Analytics 2024: upside potential for gold and silver

18 May 2024 г. 5 minutes of reading

Precious metals prices got a major boost on Wednesday after unexpectedly weak U.S. inflation data raised the likelihood that the U.S. Federal Reserve would soon cut interest rates. On Wednesday, gold rose to its highest level in more than three weeks, silver to its highest level in more than three years and platinum to its highest level in almost a year.

Strategists at Saxo Bank explained in their recent research note that the gold price could soon test the $2,400 per ounce mark, silver could rise as high as $30 and platinum has upside potential to $1,130. On Wednesday, the Danish bank explained that its “Year of Metals” slogan has gained momentum in recent weeks and emphasized its preference for gold, silver and copper.

Despite this, analysts at ROTH Capital Partners expect gold and silver prices to continue to rise in the coming months. The gold price “now seems poised to go further and break above the recent April highs. We can set a technical price target at $2,600,” said J.C. O'Hara, chief technical strategist at ROTH, in a research note published Sunday. As for silver, O'Hara said if prices break the $30 level, “there will be little resistance until the $35/37 area.”

But not everyone expects precious metals prices to soar in the coming months. Eva Mantei, a commodities strategist at Dutch bank ING, said in a research note earlier this month that gold prices are likely to decline this quarter “as the Fed maintains a cautious stance and geopolitics are already embedded in the current price.” Mantei also said ING expects gold prices to average around $2,250 an ounce in the second quarter, and to average $2,218 by the end of 2024. The bank had previously said gold prices were likely to peak at $2,300 an ounce in the last three months of this year.