Gold reaches a new all-time high, Silver at a 12-year high – ING

On Thursday, the price of Gold rose to a new record of $2,685 per troy ounce. Data on speculative positioning in the market showed that speculative net long positions in Gold rose to their highest level since February 2020 in the last reporting week. It wouldn’t be surprising if more investors have jumped on the bandwagon since then. However, this also increases the risk of a correction, notes Commerzbank commodities analyst Carsten Fritsch.

Gold rises to new all-time highs, Silver continues

“It is difficult to explain the price increase of the last few days with the expectations of rate cuts, since these have not increased further and yesterday they were even reduced a little. That is probably why the price has come down from its record in the meantime. The price It could also rise because investors are buying Gold in anticipation of a further price increase. In this context, we talked about a rational bubble a few months ago.”

“Data on the speculative position in the market, which will be published by the CFTC tonight after the close of trading, could provide some insight into this. Speculative net long positions in Gold rose to their highest level since February 2020 in the last reporting week. It would not be surprising if more investors have jumped on the bandwagon since then. However, this also increases the risk of a correction if these investors decide to exit again.”

“Silver has recently risen in the wake of Gold. Yesterday, it reached $32.7 per troy ounce, its highest level since December 2012. The Gold/Silver ratio then fell to 82, its lowest level since mid-July “Silver is likely to have additionally benefited from the extensive stimulus measures in China, which were announced this week and also caused a sharp rise in base metal prices.”