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Gold prices posted their first weekly gain in four weeks as signs of slowing U.S. inflation raised hopes of a rate cut by the Federal Reserve later this year and political uncertainty in Europe also provided further support.
gold This week’s U.S. consumer price index and producer price index data both provided evidence of softening inflation, but gains have eased after the latest Fed forecasts showed that most members now expect only one rate cut this year.
That said, gold prices should remain firmly above $2,250 an ounce in the coming months, as its safe-haven qualities allow it to thrive amid geopolitical uncertainty and as the Fed cuts rates eventually arrive , the lack of yield on gold prices also supports gold prices.
Pepperstone strategist Quasar Elizundia said that while a stronger U.S. dollar may limit a sharp recovery in gold prices, falling Treasury yields may provide some support, and with upcoming elections in Europe and the United States, gold should continue to benefit from ongoing political uncertainty. sex.
Front-month Comex gold (XAUUSD:CUR) for June delivery has closed +1.1% This week to $2,331.40 per ounce, front month June silver (XAGUSD:CUR) settled +0.2% This week it rose to $29.402 per ounce.
But on Friday, gold prices rebounded 1.3% and silver rebounded 1.4%, a day after the metal posted its worst closing price since early to mid-May.
ETF:(NYSE:GLD), (NYSE:GDX), (GDXJ), (IAU), (NUGT), (PHYS), (GLDM), (AAAU), (school), (BAR), (OUNZ), (SLV), (PSLV), (SIVR), (SIL), (SILJ)
While gold prices are up 19% from a year ago, the benchmark VanEck Gold Miners ETF is up less than half.
Some analysts have become more optimistic about the outlook for gold mining stocks as they predict higher metal prices, which could boost miners’ profits at a time when many miners are struggling to control cost inflation.
On the other hand, the growth of gold ETFs has made it easier for investors to gain direct exposure to the gold market, while gold mines are now significantly less productive than they were 20 years ago, hurting stock returns, Liberum analysts said.
