U.S. economic data detonated the rebound of precious metals, and most institutions are optimistic that the market will continue to strengthen

Finance Associated Press

2024-05-17 01:44Published on the official account of Cailianshe under Shanghai Poster Industry Group

Finance Associated Press, May 17 (edited by Zhao Hao) Precious metal prices on Wednesday (May 15) have made gains, and the U.S. inflation data released on the same day slowed as expected, enhancing the market's confidence in the Federal Reserve's earlier interest rate cut, weighing on the dollar while boosting dollar-denominated precious metals.

The data showed that the year-on-year increase in the US consumer price index (CPI) slowed to 3.4% from 3.5% in April, and the core measure slowed to 3.6% from 3.8%, both in line with expectations. Retail sales released at the same time were unchanged from the previous month, well below the previous forecast of a 0.4% increase, indicating that there are clear signs of cooling on the consumer side.

Affected by the data, spot gold prices closed at their highest level in nearly a month, falling back slightly to around $2,380 an ounce on Thursday; Silver hit a new high in more than three years, approaching the $30 mark; Platinum climbed to its peak in nearly a year and has now fallen back to $1,058 an ounce.

Year-to-date, spot gold prices have risen by more than 15%, silver prices have risen by nearly 25%, and platinum prices have risen by just over 7%. In this regard, many strategists still believe that the precious metal may continue to move higher on the current basis to set a new historical record.

Gold may soon test the $2,400 level, silver could climb to $30, and platinum has upside potential to reach $1,130, strategists at Saxo Bank wrote in a research note. The bank said that reality is continuing to move closer to the "Year of Metals" theme that it projected at the beginning of the year.

Analysts at ROTH Capital Partners in the United States also believe that gold and silver prices will rise further in the coming months. In a report at the end of last week, chief technical strategist JC O'Hara mentioned that gold appears poised to strengthen and will break above the highs set in April, "Technically, we set an upside price target of $2,600." ”

For silver, O'Hara said that if the price can break above $30, it will have little resistance before reaching the $35 to $37 area.

However, not everyone expects the precious metal to continue to strengthen. Ewa Manthey, commodity strategist at ING Bank in the Netherlands, said in a note earlier this month that "the Fed will continue to take a cautious approach, and gold prices are likely to moderate this quarter as geopolitics has been factored into current prices." ”

Manthey expects gold to average around US$2,250 an ounce in Q2 and US$2,218 for the full year 2024.

(Finance Associated Press Zhao Hao)

View original image 26K

•