Phil Carr
The Gold & Silver Club
After an explosive rally that catapulted Gold to a new all-time record high of $2,450 an ounce – prices have pulled back as trader’s bank windfall profits and get ready to capitalize on the precious metals next big move.
Once again, these incredible market moves have presented savvy traders with a series of highly lucrative opportunities to profit from the parabolic rally as well as the huge price reversal that has subsequently followed.
As the famous saying goes, “buy low, sell high” – And that's exactly the trend that we're seeing play out in 2024, which is why a long list of the world’s most powerful Wall Street banks have dubbed the current economic climate as “The Golden Age of Trading”.
Is the rally over and has all the money been made?
Not by a long shot!
Right now, Gold prices remain well supported above the key psychological level of $2,300 an ounce, which ultimately suggests that there's still plenty of upside ahead.
Data released earlier this month, showed global demand for Gold has never been stronger. In the first quarter of 2024 central banks bought 290 tonnes of Gold – the strongest start to any year on record.
More impressively, Gold demand over the last 7 quarters has exceeded 40 million ounces on average. That’s almost 2 million ounces higher than the quarterly average from Q1, 2010 to Q2, 2022.
Among central banks, the People's Bank of China has firmly taken the top spot as the biggest buyer of Gold – adding 60,000 ounces of Gold to its reserves in April.
That marked the 18th straight month the People's Bank of China added to its Gold holdings – its longest-ever Gold buying spree – as it looks to diversify its reserves away from the dollar and hedge against currency depreciation.
Gold is not the only precious metal delivering glistening returns this year.
Silver has also been on a blistering run – surging above $32.50 an ounce to hit its highest level in more than 12-years.
And the rally might not stop there!
According to GSC Commodity Intelligence – the last time Silver prices broke above $32 an ounce – the precious metal went onto trade at $50 an ounce within the space of 100 days. If this is a leading barometer for predicting the future performance of Silver prices, then this ultimately means one thing.
Higher Silver prices are coming!
That’s welcoming news for the bulls, but painful for anyone sitting on the sidelines, who must now decide how much FOMO they can handle.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
Trading has large potential rewards, but also large potential risk and may not be suitable for all investors. The value of your investments and income may go down as well as up. You should not speculate with capital that you cannot afford to lose. Ensure you fully understand the risks and seek independent advice if necessary.
Recommended Content
Editors’ Picks
AUD/USD Price Analysis: Sideways trend continues unfolding
AUD/USD is in a down-leg within a narrow trading range. The pair is probably in a sideways trend with the odds favoring an extension of that trend. A decisive break above or below the top or bottom of the range would generate follow-through targets.
EUR/USD: Central banks’ decisions will keep taking their toll
The EUR/USD pair slid below the 1.0700 mark for the first time in over a month on Friday, as the US Dollar surged on the back of risk aversion. The dismal mood prevailed throughout the week, with a short-lived exception on Wednesday when softer-than-anticipated United States inflation brought a breath of fresh air.
Gold gains ground as traders dial up Fed rate cut bets for September
Gold registered limited gains this week, supported by safe-haven flows and soft inflation data from the US. In the absence of high-impact macroeconomic data releases ahead, investors will pay close attention to technical developments in XAU/USD and comments from Federal Reserve officials.
Bitcoin active addresses hit lowest level in five years, BTC ranges below $67,000
Bitcoin, the largest asset by market capitalization, has noted a decline in its active address count per data from Glassnode. A decline in active addresses is typical at a time during a surge in Bitcoin transaction fees.
Week ahead: RBA, SNB and BoE next to decide, CPI and PMI data also on tap
It will be another central-bank-heavy week with the RBA, SNB and BoE. Retail sales will be the highlight in the United States. Plenty of other data also on the way, including flash PMIs and UK CPI.