Gold prices hit record highs as uncertainty persists | Economy News

Gold prices have hit record highs in recent months, with the precious metal surpassing $2,500 an ounce in early August 2024.

This rally began in July when gold prices exceeded $2,483 per ounce, driven by a combination of economic instability and rising geopolitical tensions, particularly in the Middle East.

While expectations of a US Federal Reserve interest rate cut, along with declining inflation and rising unemployment, contributed to boosting the gold market, according to a report published by the Oil Price platform.

Analysts expect that if the Federal Reserve takes a dovish stance and cuts interest rates later next month, gold prices could remain strong and possibly reach new record highs.

While strong technical indicators and ongoing uncertainty in global markets continue to attract investors to gold as a safe haven.

Palladium prices fall

While gold is shining, other precious metals like palladium are having a tough time; palladium prices have been on a downward trend since mid-July, mainly due to lower demand in the automotive sector where palladium is used in catalytic converters, the platform said.

Although prices briefly rose in late July, market sentiment remains bearish.

The shift towards platinum instead of palladium in various industrial applications has also contributed to the decline in palladium prices, according to Oil Price. Palladium may face continued pressure as supply levels stabilize and demand remains sluggish in the coming months.

Pressure on platinum prices

Platinum prices have also been on a steady decline month after month. Lower demand from the auto industry and increased platinum recycling have added to the downward pressure, according to OilPrice.

Fears of a possible global economic recession are further exacerbating the situation, as lower industrial demand could reduce platinum consumption in the future, according to the same source.

Despite the ongoing supply deficit that may provide some support, analysts expect platinum prices to remain within the current lower range for a long time.

Silver price fluctuations

While silver prices have seen significant volatility in recent months, rising briefly before falling again.

In early July, market optimism and some encouraging economic data sent silver prices higher. However, the rally was short-lived, according to OilPrice, as prices began to decline by the end of the month.

Silver is expected to continue to face challenges from weak industrial demand and concerns about a global economic slowdown.

Although the supply shortage may provide some positive outlook, analysts believe that silver prices may find it difficult to rise significantly in the near future.