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Commodities

Gold Silver Rally Set to Continue as US Dollar Remains Under Pressure

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Silver
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Gold and silver prices have surged by 10 to 12% in just one week, with gold reaching 10-week highs and silver hitting 7-week highs. Jonathan Barratt, CIO of ETO Markets, believes this rally is not yet over.

The two main drivers of the move are a changing interest rate picture in the US and strong demand for silver from China. Barratt notes that gold has pulled back from its earlier high near $5,500 but thinks the setup is turning bullish again.

He expects the US dollar to remain under pressure due to a weaker currency, which supports US exports and a more dovish Federal Reserve stance. This, in turn, tends to support metal prices since gold and silver are priced in dollars.

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