(MENAFN- Yolo Wire) Strategists at Saxo bank say the current rally in %Gold , silver and platinum is likely to continue with prices hitting record highs in coming months.
In a research note, the Danish bank said that gold's price could reach $2,400 U.S., while silver may climb as high as $30 U.S., and platinum could hit $1,130 U.S.
As a group, precious metal prices have been steadily rising this year on strong global demand and as expectations build for lower interest rates.
Gold, silver, and platinum each saw their prices rise on May 15 after weaker-than-expected U.S. inflation data heightened expectations for cuts from the U.S. Federal Reserve.
Gold prices rose to $2,383.30 U.S. an ounce, the highest level in over three weeks, on the inflation news.
At the same time, silver's price increased to its highest level in more than three years at $29.54 U.S. per ounce.
Platinum's price climbed to a one-year high of $1,077 U.S. per ounce.
Saxo Bank reiterated that 2024 is shaping up to be the“year of metals,” saying that precious metals are gathering momentum.
At the same time, analysts at ROTH Capital Partners have forecast that gold and silver prices will move higher over the coming months on increased buying among central banks.
ROTH Capital partners has set a price target of $2,600 U.S. an ounce for gold and $37 U.S. an ounce for silver.
Gold, which is viewed as safe haven asset in times of financial uncertainty, has been on an upward trend since Russia invaded Ukraine in 2022 and central banks began buying the yellow metal.
Gold, silver, and platinum prices have an inverse relationship to interest rates. Higher rates usually hurt demand for precious metals as they do not pay interest, making them less attractive than investments such as bonds.
Lower interest rates are expected to provide a tailwind to gold, silver, and platinum prices, pushing them higher.
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