Gold and silver prices saw significant gains at the beginning of the day but are expected to consolidate next week as momentum may have peaked. Gold prices surged to over 4% before settling close to where they started the week, while silver hit a three-year high before stabilizing above $28 an ounce. Analysts note that gold remains strong, with the potential for another record weekly close despite reduced expectations for a rate cut in June.
As the precious metals market continues to show strength, some analysts suggest that the rally may be becoming over-extended, prompting investors to consider taking profits off the table. While the Federal Reserve may delay an easing cycle, the likelihood of interest rate hikes remains low, creating a positive environment for gold prices. Market dynamics, including rising inflation fears and global economic uncertainty, continue to support gold’s performance despite potential short-term corrections.
While the focus remains on gold in U.S. dollar terms, the precious metal has made significant gains against other major currencies. Analysts caution against chasing the market at current levels and advise buying on dips. Despite sentiment playing a key role in price action, upcoming economic data releases, such as retail sales numbers and Federal Reserve Chair Jerome Powell’s speech, could add to market volatility in the coming week, impacting the direction of gold and silver prices.
