Gold, Silver Prices Expected to Surge as Dollar Weakens
Financial markets are looking at a potential boost for gold and silver prices in August, according to Peter McGuire, CEO of Trading.com. The US dollar is expected to weaken, which could support demand for precious metals. As of December futures on Comex, gold was trading around $4,450.
McGuire predicts that gold could climb to $4,600 by the end of August, driven in part by a softer US economy and expectations of a potentially more accommodative Federal Reserve. The US dollar index has slipped below 99.50, with McGuire expecting it to drop below 99 in the near term.
The market will be closely watching the minutes of the Federal Open Market Committee's latest meeting and upcoming signals from the US Federal Reserve, including Chair comments at the Jackson Hole symposium. A softer dollar could provide further support for gold and other commodities, with McGuire stating that a rate hike in September has diminished.
Silver prices are also expected to rise, potentially reaching $70 as gold approaches $4,600. The metal has already gained around 15% from its approximate price of $57. According to McGuire, if gold reaches $4,600, silver could move above $70.