Daily Gold Market Report

Gold Prices Stabilize After Record Highs:
What’s Next for Investors?

(USAGOLD – 5/17/2024) Gold prices are strong in early trading and silver is close to its three-year high scored in April. Gold is trading at $2388.44, up $11.48. Silver is trading at $29.93, up 35 cents. The recent gold price rally, driven by central banks shifting from US Treasuries to gold, appears to have stalled. Despite record-breaking prices, global gold demand has remained flat over the past decade, with the rally largely fueled by increased willingness to pay and speculation. Central banks, particularly in China and Russia, have increased their gold purchases, while other gold-buying central banks have also increased their US Treasury holdings since 2022. Although gold remains a hedge against economic and systemic risks, the medium to long-term outlook suggests more downside than upside. Investors should consider gold’s role as a portfolio hedge rather than chasing price gains.

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