Gold and Silver Prices Rally, Eyeing New Highs Amid Market Optimism
The spot gold price is making a strong recovery, edging closer to its record high from July. After testing the 50-day simple moving average for the second time in a month, gold buyers have regained control, suggesting that a push to new all-time highs is on the horizon.
Meanwhile, spot silver has rebounded over the past three sessions, now testing trendline resistance established in mid-July.
A decisive close above $28.00 would strengthen the bullish outlook, setting the stage for a potential rally towards $29.00. Despite a 0.5% dip last week, silver remains within striking distance of its all-time high, with the metal up nearly 20% for the year.
This strong performance is largely driven by expectations of a Federal Reserve rate cut later this year.
The recent easing of inflationary pressures has bolstered policymakers’ confidence in their ability to start lowering borrowing costs, shifting their focus towards a labour market that is beginning to show signs of cooling.
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