Gold rose for the first time past $ 3,000 on Friday, fed by investor demand to safe port activa. The rally was driven by concern about the tariff war of US President Donald Trump, who caused volatility at stock markets. Investors looking for protection against economic uncertainty that are cast in gold and pushing the almost 14% higher year to date.
The demand for central bank has also played a crucial role in the power of Gold, where China increases its precious metal reserves for the fourth consecutive month. Moreover, the expectations of the interest rate letings of the Federal Reserve support zero revenue assets as gold later this year. Goldman Sachs now sees potential benefits further than its $ 3,100- $ 3,300 forecast range, stating continuous policy uncertainty and diversification of the central bank away from the US dollar.
Taking profit and exhibition recovery weighing on silver
Despite the strong weekly performance of Silver, Friday’s decline was probably driven by taking a win before the weekend. Some traders reduced long positions after the withdrawal of Gold and the sharp rebound in US shares, which reduced the immediate demand for the protection of safe haven.
While silver often follows Gold’s movement, the industrial demand component adds a different volatility layer. With recovered stock markets, the appetite can temporarily shift from noble metals, so that the pressure in the short term exerts on silver.
Market forecast: Temporary dip for the next step?
If silver confirms the reversal pattern, the prices can see a short correction to $ 31.81- $ 32.53, where buyers are expected to step in. Strong support for advancing averages suggests that any withdrawal can be limited, so that the wider upward trend remains intact. However, if silver becomes stronger and breaks above $ 34.08, the next leg can focus higher the level of $ 35.40.