Gold is up $13 to start the week after peaking at record highs and reversing near $100 on Friday.
Gold continued to heat up for most of last week, but it ended worryingly as it climbed to $2,430 only to fall as low as $2,335. It rebounded today but generally appears to be consolidating after Friday’s extreme volatility.
Gold 10 minutes
ANZ Reserach expects gold to trade near $2,500 by the end of 2024. This follows Goldman Sachs raising its call to $2,700 on Friday.
Notably, ANZ expects silver to outperform and rise to $31 an ounce as retail traders try to catch up, a move that has been largely missed so far.
I recognize that retail has not participated, especially in the West. Much of the buying has been driven by Asia, likely by central banks, but also by Chinese ETF buyers. So, although American retail could boost the recovery, it is sluggish in China.
So far we haven’t had many real dips to buy and the ones we’ve seen since the rally began in late February have been superficial. A few days of consolidation here could be constructive, but if $2,335 breaks, we could expect a deeper correction to $2,250 initially.
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