Here's why the case for Gold at $3,000 and Silver at $50 just got a lot stronger [Video]
|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:
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