Gold prices have surged to a new record high of $US3508 per ounce, according to IG market analyst Tony Sycamore. Silver also experienced a significant increase, reaching $US40.85 per ounce, its highest level since September 2011. This rally reflects a trend of investors seeking the security of hard assets and precious metals amid economic uncertainty.
The upward movement in gold and silver prices commenced mid-morning on Monday, coinciding with a social media post by US President Trump. In his post, Trump asserted that prices in the USA are “WAY DOWN” and that there is virtually no inflation.
However, Sycamore notes that Trump’s narrative clashes with recent economic data indicating ongoing inflationary pressures. Trump is also reportedly continuing to reshape the Federal Reserve board to push for quicker and larger interest rate cuts, despite the Atlanta Fed GDP reading showing the economy growing at a rate of 3.5 per cent in the third quarter.
Sycamore suggests that further gains for gold beyond $US3500 will depend on Friday’s non-farm payrolls report and next week’s BLS labour market revisions. He added, “If these are both soft, a move to $US3750 is not out of the question as the scramble intensifies.”
