Gold, silver could shine brighter with investor demand, geopolitical risks

Gold and silver extended gains on Fed rate cut expectations, weak US data, ETF inflows and geopolitical risks, with investors seeing further upside despite short-term volatility

The rally in precious metals continued into September. Gold spot prices tested $3,600/oz and futures surpassed $3,650/oz, due to a combination of weak jobs data from the US labour market and expectations that the US Federal Reserve may be inclined to ease.

 

The yellow metal gained more than 4 per cent in the first week of September, taking year-to-date gains above 36 per cent. Momentum accelerated as geopolitical risks intensified, with fresh Russian strikes in Ukraine. Disappointing US data fuelled the rally with very weak employment data. Weak labour data could trigger the Fed into three 25 bps cuts this