“Central banks' soft monetary policy is an important supportive factor for the gold market, but not for silver and copper. Industrial metals are largely dependent on tax breaks and the recovery of the global economy, but they are increasingly being affected by the situation on the stock exchanges, ”reads the monthly review of the commodity market.
In order for silver to show better dynamics than gold by the end of the year, for this, a scenario of several events must be realized on the market, namely: an increase in government bond yields, a strengthening of the US dollar, a decrease in volatility in the stock market and a recovery in the global economy. However, analysts believe such a development of events is unlikely.
"Until the end of this year, the cost of gold will grow, especially in relation to silver, copper and other base metals, which, in our opinion, are under great pressure due to volatility in the stock market and weak growth in the global economy," - said in the review Bloomberg. "In the event of a correction in the stock market, gold will further strengthen its position, while base metals, on the contrary, will decline."
According to analysts, the price rally in the gold market is at the very beginning. If we extrapolate the situation in 2008-2011, then the yellow precious metal could rise to $ 4,000 per ounce by 2023. It is worth recalling that in 2008 gold bottomed out at $ 700, but then, by 2011, rose to $ 1,900 an ounce.
The stock market will continue to influence the pricing of the yellow precious metal. “If you look back, at some point the stocks will turn into a bearish trend. The skyrocketing rise in stocks in recent years has left gold behind. "
In general, analysts are optimistic about the future prospects for gold, but at the same time they warn that the $ 2,000 mark will become a serious level of resistance, and it may take some time to overcome it.