Gold is overbought, but silver prices see fresh support from Indian demand

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Gold,Silver,Platinum

The Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.

Kitco NEWS has a diverse team of journalists reporting on the economy, stock markets, commodities, cryptocurrencies, mining and metals with accuracy and objectivity. Our goal is to help people make informed market decisions through in-depth reporting, daily market roundups, interviews with prominent industry figures, comprehensive coverage of important industry events and analyses of market-affecting developments.

“The gold price pencilled in a joint record weekly close of $2,395/oz last week, even as Fed chairman Jerome Powell signalled that he would keep interest rates at current levels for as long as necessary to bring down inflation,” they wrote. “US Treasury yields rose across the curve with the short end closing in on 5%, and the US dollar rose to the strongest level in five months.”

“This has taken total holdings to ~67 tonnes , which goes some of the way to explain why the gold price has reversed its typical relationship with yields and the dollar,” they added. “The gold price is overbought and showing divergence with the daily RSI, so could struggle to make further headway near term.”

“Following a 25% decline in silverware and jewellery fabrication in India last year , trade data suggests restocking is underway, which tends to be bullish for short-term demand,” they wrote. “Imports of silver picked up in Q4’23 and continued in January . A total of 637 tonnes of silver was imported at the start of the year, 138% higher than the five-year average and a suggestion that after a slack year, 2024 could see demand rise.

Heraeus noted that silver has continued to follow gold’s lead as both metals have traded at elevated levels. “The gold:silver ratio dipped to a four-month low of 81 before rebounding to above 83, as ETFs experienced significant outflows of 16.8 moz this week,” the analysts said. “This suggests gold still outperforms silver as a preferred safe-haven asset amid turbulent geopolitics.”

 

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