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