Gold and Silver Prices Slump Amid Global Economic Uncertainty

Gold and silver prices have cooled down this year after a strong start in January. Gold peaked at $5,500/oz in January but dipped below $4,000 by late June. The World Gold Council notes that gold is sensitive to geopolitical concerns and investor sentiment.

The People's Bank of China has been aggressively purchasing gold, acquiring 15 tonnes in June alone, its largest monthly purchase in two and a half years. Its record reserves now equate to almost 10% of its total foreign exchange reserves.

JP Morgan Wealth Management expects the price of gold to end the year between $4,350 and $4,650.

Silver has also seen a decline, reaching as high as $120/oz in January but now trading at around half that level. Analysts believed the prices were unsustainable, and industrial users have been forced to increase recycling and minimize metal use where possible.