England – Both gold and silver strengthened their performance during the first nine months of this year, due to a combination of factors that pushed the yellow metal to record unprecedented historical peaks, in addition to the prices of silver contracts.
A survey conducted by Anatolia, based on historical data for gold contracts, shows that the prices of the yellow metal increased by 27.5 percent during the first nine months of this year, compared to the numbers for the end of 2023.
At the end of the session on September 30, spot gold contracts reached $2,659 per ounce, a price close to the historical peak recorded at the end of the session on the 26th of the same month, which amounted to $2,682 per ounce.
The rise in gold prices comes primarily as global central banks continue to rush to buy the precious metal, amid fears of accelerating inflation and geopolitical tensions.
Also, the US Federal Reserve’s announcement of the start of monetary easing or lowering interest rates led to support for gold contracts, which are moving contrary to interest rates under normal circumstances.
On September 18, the US Federal Reserve announced a reduction in interest rates by 50 basis points to a range of 4.75 percent – 5 percent, with two meetings remaining before 2025, amid expectations of at least an additional cut.
In a total of the first half of 2024, the world’s central banks bought 483 tons of gold, the highest level ever during that period, according to data from the World Gold Council.
Central banks around the world were stockpiling their gold reserves at record levels in 2024 in an effort to store valuable assets.
The number of purchases for the first half of 2024 is 5 percent higher than the previous record of 460 tons, which was recorded in the first half of 2023.
Also, Beijing’s appetite for buying gold has continued since the beginning of 2023, as the People’s Bank of China continued its purchases for the eighteenth consecutive month during last April, raising its total possession of gold to 2,264.3 tons.
On Monday, Goldman Sachs raised its forecast for the price of gold in early 2025 to $2,900 per ounce from $2,700, citing faster declines in short-term interest rates in the West and China and strong purchases from central banks.
Goldman Sachs said in a research note: “We reaffirm our recommendation to buy gold for a long period, due to the gradual support resulting from low global interest rates, high demand from central banks, and the gains provided by resorting to hedging in gold in the face of geopolitical and financial risks and recession.”
As for silver, its prices rose during the first nine months of this year, by more than 37 percent, compared to the numbers for the end of 2023, recording $33.5 per ounce.
On September 24, 2024, silver confirmed its ability to reach the price target of global investment banks, amounting to $34.7, amid expectations that it will reach $50 by the first half of 2025.
According to a research note by InvestingHaven, a specialist investment firm, the price of $34.70 per ounce is a no-brainer target in 2024.
She said: “Our second upward target is $37.70…then we expect a rapid rise to $48-50, to be reached in the period from April to June 2025.”
As for Wall Street, the S&P 500 index rose by 20.8 percent during the first nine months of 2024, but it remains less profitable for investors in the gold market.
But this index achieved its strongest start since 1997, according to FactSet, a company specializing in tracking global stock indices, when the US economy was on the rise during the dot-com boom under President Bill Clinton.
As for the US Dow Jones Industrial Average, it grew by 11.8 percent during the first nine months of this year, while the Nasdaq 100 index grew by 19.5 percent during the same period.
Anatolia
#Gold #silver #top #commodity #market #winners #months
2024-10-03 19:59:47
