Market Update April 2 – Analysts Bullish on Gold & Silver

The consensus among precious metal analysts is that their forecasts for gold in Q1 2024 were not bullish enough. Conversely, their outlook on silver during the same period was overly optimistic. As we move into Q2, analysts are feeling optimistic about the prospects for both gold and silver for the remainder of 2024. They have issued revised price target ranges for both metals, priced in USD:

Original 2024 Price Range for Gold: $1,900 - $2,200

Revised 2024 Price Range for Gold: $2,000 - $2,475

Original 2024 Price Range for Silver: $21.50 - $30

Revised 2024 Price Range for Silver: $23 - $32

(Source: MKS PAMP SA)

The demand for gold has been stronger than expected, particularly in the Asian market, coupled with consistent buying by Central Banks and persistent underlying geopolitical risks. Additionally, neither producer-related nor secondary supplies have reengaged as expected at the current price peaks, allowing gold prices to climb higher.

Silver remains an appealing trade, as it has not mirrored the positive trend in gold prices as closely as one might expect. Despite a 5% increase in Q1, analysts believe that reduced mining output and a decrease in above-ground supply have positioned silver for a potential breakout. The development of a ‘gradually, then suddenly’ scenario is leading to higher price forecasts. The gold/silver ratio, currently at 88:1, is expected to move toward the lower end of its year-to-date range (86:1).

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Mark Yaxley, CEO of Strategic Wealth Preservation (SWP), began his journey in precious metals with Kitco Metals in 2006. Co-founding SWP in 2014, he now guides individual and commercial clients towards their investment goals. Renowned for his 'Inside the Vault' YouTube series, Mark has helped millions gain insights into gold and silver bullion ownership.