MENA Newswire News Desk: Precious metals are shining brighter as gold hit an all-time high of USD 2,607 per ounce earlier this month, reflecting a surge of over 25% year-to-date. Experts point to the influence of macroeconomic uncertainties, geopolitical tensions, and central banks’ continued trend toward diversifying from the US dollar as key drivers behind the price increase.
Despite a generally less dovish stance from the Federal Reserve, gold has continued to outperform equities during recent market volatility. The metal’s performance highlights its traditional role as a hedge in uncertain times, especially with ongoing conflicts like those in Ukraine and Gaza.
Analysts expect gold to maintain its status as a favored asset for mitigating both geopolitical and interest rate risks. With gold’s rally showing no signs of stopping, projections suggest prices could reach USD 2,700 per ounce by mid-2025. August saw a notable uptick in gold Exchange-Traded Fund (ETF) demand, with inflows for the fourth consecutive month, according to data from the World Gold Council. Total holdings have rebounded to nearly 3,182 metric tons, marking the highest levels since early 2024.
Silver, while trailing behind gold, could soon benefit from the same macroeconomic trends. The gold-silver ratio rose back above 85:1 in recent months, driven by weakness across base metals and a slowdown in China’s solar industry. Nonetheless, silver’s long-term fundamentals remain solid, with analysts predicting that supply deficits will help boost prices over the next 12 months.
The platinum group metals (PGMs), including palladium and platinum, have experienced mixed fortunes. While palladium prices have struggled due to market surpluses, platinum is poised for gains, supported by a market deficit and rising production costs, particularly in South Africa. Despite these challenges, PGMs are expected to remain volatile, making them attractive for certain trading strategies.