Gold and Silver Prices Surge to New Highs: $5,200/oz Gold and $88/oz Silver, What's in Store for the Precious Metals Market?

Precious Metals Report

Gold and Silver Prices Turn Green After US Fed Rate Cut Expectations Diminish

On Wednesday, spot gold prices rose 0.48% to $5,202 per ounce, while spot silver prices increased 0.96% to $88.25 per ounce, snapping their four-day winning streak. The turnaround comes as expectations of a US Fed rate cut in the upcoming meeting have reduced.

Key Drivers

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The US labour market's improving conditions, as indicated by recent economic data, may lead the US Fed to keep interest rates unchanged "for some time," according to Susan Collins, President of the Federal Reserve Bank of Boston. Elevated borrowing costs typically act as a headwind for precious metals, which do not generate interest income.

Market Sentiment

Persistent uncertainty around US tariffs and escalating tensions in the Middle East are expected to keep safe-haven assets firmly on investors' radar. The US and Iran are set to hold a third round of nuclear negotiation talks on Thursday in Geneva.

Brokerage Firm Outlook

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Motilal Oswal expects gold to remain well-supported over the long term due to reserve diversification, limited supply growth, and ongoing global uncertainty. The long-term outlook for gold remains positive, with prices likely to stay supported around and above $5,000 per ounce.

Technical Outlook

COMEX Gold is trading in the $5,100–$5,300 zone following consolidation in recent sessions. A sustained breakout above $5,500–$5,600 could open the path toward fresh record highs. COMEX Silver is trading near $85–$90 after correcting from record highs above $121. A sustained recovery above $92–$96 could reignite momentum toward $100–$105 and potentially retest previous highs.