Driven by news of the US fleet heading towards Iran and a weakening dollar, precious metal prices have repeatedly hit record highs in recent days. On the morning of the 29th, spot gold broke above $5,500 per ounce, reaching a high of $5,598.88 before pulling back; spot silver also surged strongly, reaching a high of $119.44 this morning.
As of 12 pm Malaysia time on the 29th, international gold was quoted at $5,537.6, and silver was at $117.1.
SBG Securities is the most optimistic about the gold outlook, believing that if the Federal Reserve cuts rates twice this year, gold could hit $7,000 by year-end; if the Fed turns even more dovish and cuts rates three times, gold could even break through the $10,000 barrier.
Citi Expects Silver to Hit $150 Within Three Months
Citi analysts expect China's strong buying momentum to persist, believing that silver prices will need to rise higher to prompt current holders to sell. Spot silver is expected to hit a new high of $150 within three months. The analyst also noted that if the gold-silver ratio falls back to the 2011 low of 32:1, silver prices could rise to $170.