New Delhi [India], May 8 (ANI): Gold Will continue to surpass silver in the precious metals market, according to reports. Said Gold Goldman Sachs in a recent report.
The historical relationship between gold and silver prices, usually ranging from 45 to 80, was reportedly "breached" for the first time since 2022. This shift can be linked to significant increases in gold acquisitions by central banks; however, this pattern hasn’t been mirrored by silver, often considered gold’s counterpart. Silver .
The report stated, "We anticipate that silver will not keep pace with the surge in gold prices due to increased central bank purchases of gold, which have fundamentally raised the gold-to-silver price ratio."
Nevertheless, silver has received support from the China Despite the surge in solar energy, the industrial demand for metals is insufficient to counterbalance the significant purchases of gold by central banks.
Gold The attractiveness of gold for central banks is due to its physical characteristics, which make it more appropriate for managing reserves. Gold is rarer, has greater value per ounce, and is denser compared to silver, making storage, transportation, and security simpler.
The report indicates that despite a potential deceleration in China’s solar manufacturing and ongoing recession concerns, central banks are anticipated to continue their substantial purchases of gold throughout 2025, which should bolster gold's strong performance.
As the flow patterns show strong correlations, an increase in demand for gold in 2025 is expected to boost silver prices too. This was noticeable during the rally of Q1-2025, where ETF purchases and speculative investments bolstered both metals. Gold man Sachs said.
Gold Goldman Sachs continues to be optimistic about gold, projecting a baseline target of $3,700 per ounce by year-end and expecting it to reach $4,000 by mid-2026. They suggest that worries over U.S. governance and institutional reliability, along with a shift towards safer assets and more aggressive Federal Reserve interest-rate reductions, could drive gold prices significantly higher than their already positive forecast amid what they anticipate might be a U.S.-policy-induced economic downturn.
Although, according to the report, if a recession happens, they predict that the increase in ETF investments could push the gold price up to $3,880 by the end of this year. Furthermore, in very unlikely but severe situations where markets become more concerned about potential issues with Federal Reserve policies or alterations in U.S. reserve strategies, they believe gold might feasibly reach around $4,500 per ounce by late 2025. (ANI)