Gold and Silver Prices Poised for Record Highs: Expert Analysis and Market Outlook
Gold and silver prices are on a trajectory to achieve fresh record highs in the coming days, according to Maneesh Sharma, AVP - Commodities & Currencies at Anand Rathi Shares and Stock Brokers. This bullish forecast comes amid a backdrop of escalating geopolitical tensions and market uncertainties that are driving demand for safe-haven assets.
Current Market Scenario and Price Movements
On Tuesday, gold surged past $4,700 per ounce, marking a new all-time high, while silver also reached an unprecedented peak above $95 in spot trading. This remarkable rally has been fueled by President Donald Trump's controversial push to take over Greenland, which has sparked fears of a potential trade war between the United States and Europe. Markets are now anxiously awaiting Europe's response to Trump's threats of imposing tariffs on eight European nations that oppose his ambitions regarding Greenland.
Investors are also closely monitoring developments from Davos, where Trump indicated plans to meet with various parties to discuss his strategy for gaining control of the Danish territory. The United States' aggressive stance towards its NATO allies has significantly rattled global markets, bolstering demand for traditional safe-haven assets and reviving the so-called "Sell America" trade sentiment.
Geopolitical Factors Driving the Rally
The Greenland crisis, following closely on the heels of the US seizure of Venezuela's leader, has provided additional momentum to what was already a rapid ascent in precious metal prices. Furthermore, the Trump administration's renewed attacks on the Federal Reserve have contributed to the strength of gold and silver this year, reigniting concerns about the central bank's independence.
Investors are also keeping a close watch on the US Supreme Court's upcoming arguments regarding Trump's efforts to fire Fed Governor Lisa Cook, scheduled for Wednesday. This legal battle could prove pivotal for the Federal Reserve's continued autonomy and has significant implications for market stability.
Expert Price Outlook and Technical Analysis
Weekly View for Gold: With a current market price (CMP) of $4,735 per ounce, gold exhibits a positive bias and is expected to target new highs around $4,850 in the coming weeks. Technically, gold has successfully crossed its December peak in recent weeks, emerging from a consolidative phase and signaling a resurgence of upward momentum.
Gold is projected to gradually advance toward $4,850 in spot trading, with longer-term projections around $5,000 appearing achievable within a short-term timeframe of two to three weeks. The December high range of $4,535 to $4,550 in spot prices could now serve as immediate short-term support for the current month.
Weekly View for Silver: Silver, currently trading at $95.25 per ounce, is expected to experience a volatile journey toward the $99 to $100 range within one to two weeks. The white metal has been on a parabolic rally since December, steadily grinding higher toward the $98 to $100 levels in spot trading.
Silver's relatively small investable market size, estimated at approximately $5 trillion—roughly eight to nine times smaller than gold's market—means that incremental capital flows can disproportionately impact prices. China's significant role in heightened trading activities this month has further amplified these effects. Despite these dynamics, silver prices are still anticipated to reach new peaks in the coming days as geopolitical tensions between the US and EU nations continue to simmer.
Market Dynamics and Supporting Factors
Adding further fuel to the precious metals rally, the "Sell America" trade appears to be resurfacing in global markets. The US dollar has weakened broadly, even against commodity-linked currencies, providing an additional tailwind for gold and silver. With renewed fears of a transatlantic trade war, gold is once again finding strong support from geopolitical uncertainty, reinforcing its status as a preferred safe-haven asset.
Disclaimer: Recommendations and views on the stock market, other asset classes, or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.
