Gold and silver surge sharply, but short-term upward movement still faces pressure
Source: Global Times
[Global Times Financial Comprehensive Report] On May 6, both gold and silver saw sharp increases. As of press time, spot gold once rose to $4,656 per ounce, expanding its gains to 2%. Spot silver's intraday gain widened to 3% as well.
According to Bloomberg, gold still faces short-term pressure as concerns about inflation have heightened market expectations for a Federal Reserve rate hike, which would put pressure on gold. Bond traders are stepping up their bets that the central bank’s next policy move may be a rate hike rather than a cut. Since the end of February, gold prices have fallen more than 12%.
Nicky Shiels, Head of Metals Strategy and Research at MKS PAMP SA, stated in a report that precious metals are entering the summer with a "structural position paradox." The notional amount of capital invested in gold remains crowded, but in terms of contracts and ounces, positions are still relatively light. She added, "In the short term, for gold prices to reach new highs, those comprehensive institutional funds need to enter to fill the gap left by the seasonal patterns and the already depleted retail funds."
Guotai Haitong Securities suggested in their May fund strategy that the strategic allocation value of gold remains in the long run. From the perspective of long-term investment and risk aversion, they believe that a moderate allocation of gold ETFs can be considered. Shenwan Hongyuan Futures also stated that gold’s long-term upward trend remains unchanged, while silver, platinum, and palladium resonate in both their industrial and financial attributes, following the overall sector trend but with relatively greater volatility. (Wen Hui)
Editor-in-charge: Zhu Henan
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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