Gold is continuing to reach new heights after setting a new all-time record of more than $3,511 an ounce last night (3 April 2024).
The latest push behind precious metal comes off the back of statements made by Federal Reserve Chair Jerome Powell that recent job gains and higher-than-expected inflation do not change the overall picture of the reserve’s economic policy.
Yesterday’s record comes less than a month after the spot price broke the previous record of about $3,259 on 7 March 2024.
As highlighted in Sprott Asset Management’s ‘Q1 Precious Metals Report’, several factors are taking place for gold to potentially move higher, particularly central bank buying.
A strategic shift towards gold by central banks could create a new dynamic in gold pricing, breaking historical correlations, says Sprott.
As reported by Mining.com.au earlier this week, the start of 2024 for the ‘safe haven’ asset seems no different to 2023 in terms of pricing albeit breaking new highs.
Meanwhile, silver has also witnessed some slight upside, sitting as of 2 April just over the $40 per ounce threshold — the first time since August 2020, says ABC Bullion.
Sprott states there are three primary drivers for a higher silver price, one being silver tracking rising gold due to central bank buying, and the others being reflation trade and increased solar panel demand.
Due to its ductile state, silver’s main use today is in industrial areas, whether in mobile phones or solar panels.
Write to Adam Drought at Mining.com.au
Images: Brightstar & Supplied
