Investing.com – Gold continues to shine. Gold surpassed records in May and remains a commodity market highlight, with demand dominated by Asia. Over the past three months, June deliveries have increased by about $300, from $2,052 to the current $2,360. On Tuesday, futures rose 1.10% to $2,360 an ounce, while they rose 0.32% to $2,357.
“The gold market is special. Although global demand has barely grown over the past decade, prices have doubled. The explanation for this is that, rather than overall demand growth, it is the shift between segments and regions, plus the willingness to pay. that drives the price,” notes Swiss group Julius Baer.
Julius Baer, who sees increasing risks for the metal, argues that Asia’s willingness to pay more for gold is motivated not only by economic factors but also by geopolitical factors. There is no gold rush, but demand in China remains strong, with De Volksbank responsible for at least 30% to 50% of all purchases by monetary authorities in the past two years.
The reason, according to Carsten Menke, head of next generation research at Julius Baer, is related to the desire to reduce dependence on the US dollar and, in extreme cases, possible sanctions.
“China’s central bank is showing signs of price sensitivity, but its willingness to pay has increased as gold prices rise,” he added.
In addition to gold, Julius Baer has a constructive view on silver, both recently reviewed from a cautious perspective.
For gold, the three- and twelve-month price forecasts are $2,450 and $2,550 per ounce, respectively. Meanwhile, the estimated price for silver is $31 and $33 respectively.
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