Gold, Silver Prices Forecasted Higher Despite Ongoing Market Volatility
Gold and silver investors are receiving new short-term buy signals, according to Jeffrey Christian of CPM Group. Despite recent market fluctuations, Christian's firm maintains a bullish outlook for both metals over the next four months.
The team at CPM expects higher prices due to ongoing political and economic risks that will continue to support investment demand. However, they do not rule out further declines along the way.
Christian points out that much of the increase in gold's value can be attributed to the rising value of existing central bank reserves rather than an expansion in the quantity held by these institutions. He attributes this rise to private investment demand and notes that reserve percentages alone can give a misleading impression of central bank buying.