(Bloomberg) – Gold scored a record record at the opening ceremony of this week after funds flowing into exchanges reached three years highs, with investors betting on the Fed’s tax cut cycle. Silver also rose, up 50% at the beginning of the year.
More expensive metals soared to historical heights above $3,700 per ounce, growing five times a week as the Fed cuts speed and marks further easing as the end of the year. Gold bar-backed ETFs soared 0.9% last Friday, as percentages since 2022, according to data compiled by Bloomberg.
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Gold and silver have been one of the best performing commodities of the year, with the broad support factor, central banks strengthening their reserves as Fed policies, while lingering geopolitical tensions continue to bid. Major banks, including Goldman Sachs Group Inc., have marked their expectations for further gains.
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“The technicians look very strong and expectations for slowing down are increasing,” said Soni Kumari, commodity strategist at ANZ Group Holdings Ltd. “One ounce of resistance damages $43, while the golden color costs $3,708 per ounce, an ounce – indicating that the price will continue to rise.”
This week, traders will parse data including personal consumption spending in August. The Fed's preferred measure of potential inflation may grow at a slower rate, which may strengthen the case for more cuts. In addition, Fed Chairman Jerome Powell will speak on Tuesday's outlook.
For some, the rapid climb of gold bars last month is a reason to be cautious.
“After climbing more than 10% in the past five weeks, gold prices are too high,” analysts at Heraeus precious metals GmbH & Co KG said on Monday. “This adds an opportunity for a period of merger so the price can be traded sideways for a while.”
Silver was harder than gold on Monday, probably backed by call options trading. The daily number of iShares silver trust options soared to 1.2 million on Friday, the highest since April 2024, with a peak call option.
Live gold rose 1.6% at 2:53 p.m. in New York, $3,746.16 per ounce. Bloomberg's market cap index fell 0.2%. Silver rose 2.3% to more than $44 per ounce, while platinum and palladium were obtained.