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Gold futures extended last week’s rally to reach a new all-time high, as Chinese investors flock to safe havens and interest rate cut hopes rise in the U.S. following on last week’s encouraging inflation data.
Front-month Comex gold (XAGUSD:CUR) for May delivery finished +0.9% to $2,433.90/oz, after reaching an intraday high of $2,454.20/oz earlier in the session; the yellow metal’s prior record was $2,448.20, set on April 22.
Gold’s momentum helped carry silver to fresh 11-year-plus highs, with front-month Comex May silver (XAUUSD:CUR) surging +3.7% to $32.205/oz, its eighth gain in nine sessions and highest settlement value since January 23, 2013; copper also jumped to a new record high.
ETFs: (NYSEARCA:GLD), (NYSEARCA:GDX), (GDXJ), (IAU), (NUGT), (PHYS), (GLDM), (AAAU), (SGOL), (BAR), (OUNZ), (SLV), (PSLV), (SIVR), (SIL), (SILJ)
“Gold reached another record high, copper eclipsed the March 2022 all-time peak and is making higher highs, and silver at over $32/oz is at its highest price in over a decade,” precious metals analyst Andrew Hecht of the Hecht Commodity Report told Seeking Alpha. “The price action in metals signals a decline in the U.S. dollar’s value and purchasing power and could be a warning that other raw materials prices will follow on the upside.”
Adding to gold’s upside Monday was elevated risk aversion as Iranian President Ebrahim Raisi was killed in a helicopter crash, Kitco Metals said.
Much of gold’s gain has been driven by Chinese investors who view gold as the safest haven for their cash, according to SP Angel analysts, amid the potential for a collapse in the Chinese yuan and local equities from the country’s continually weak property market.
“Financial players are starting to turn back towards gold. The West returning to buying gold, using ETFs as a proxy, could drive prices higher again,” Crayfourd told Dow Jones.
