Gold, Silver May Gain Another 10% as Commodity Rally Continues

Commodities expert Viral Shah at 360 ONE expects gold and silver to continue their upward trend, potentially rising another 10% over the next six to eight months if US bond yields soften. This prediction comes despite a sharp rally in both metals already, driven by factors like a weaker dollar and softer US jobs data.

The key factor that could lead to this further increase is a decline in US bond yields, which would make gold and silver more attractive to investors. Shah believes that if bond yields come down, these commodities could see another 10% move upwards.

Copper and zinc are also expected to remain strong due to fundamental demand factors. Copper has been in a structural bull trend for about a year, supported by demand from artificial intelligence, data centers, and global electrification. Zinc is benefiting from supply-side concerns, particularly lower production in China following flooding, which has resulted in falling inventories on the London Metal Exchange.

However, crude oil presents a different picture. Shah believes that prices could fall another 7-8% if West Asia tensions ease and oil flows improve.