Gold and silver prices continued to climb on Monday after cementing their best weekly performance since March.
Price action
- Gold futures GC00, +0.04% GCZ22, +0.04% for December delivery gained $6.70, or 0.4%, to $1,788 per ounce.
- Silver futures SI00, +1.01% QIU22, +1.01% for September delivery advanced 24 cents, or 1.2%, to $20.44.
- Palladium futures PA00, +2.67% PAU22, +2.67% for September delivery gained $44, or 2.1%, to $2,174 per ounce, while platinum futures PL00, +1.87% PLU22, +1.24% for October delivery gained $14.30, or 1.6%, to $904 per ounce.
- Copper HG00, +0.32% HGU22, +0.32% for September delivery was flat at $3.56 per pound.
What analysts are saying
Strategists warned that the latest rally — the biggest for gold and silver since March — has been driven by the perception that the Federal Reserve is planning to slow the pace of rate hikes. Rupert Rowling, a precious metals strategist with Kinesis Money, warned that it could reverse if investors abandon the view that the Fed is already slowing the pace of rate hikes in response to a slowing U.S. economy.
“A large portion of markets’ recent bounce, which gold has also been a beneficiary of, has been predicated on future Fed rate hikes being smaller with fewer of them required. If this proves a false dawn then a fresh slide of both equities, particularly growth stocks, and gold can be expected,” Rowling wrote in an emailed note viewed by MarketWatch.
