The demand for gold is expected to decrease as summer approaches, according to Heraeus strategists. This trend is typically seen in the second quarter of the year, following the strong gold-buying season in China during the Lunar New Year. With Chinese consumer demand historically declining in Q2, analysts anticipate a decrease in demand due to high gold prices and fewer weddings and festivals in India during this period.
On the other hand, silver prices are expected to catch up to gold, as the gold-to-silver price ratio suggests that silver is currently undervalued compared to gold. Despite initial sluggish demand for silver driven by industrial components, analysts believe that the ratio will begin to fall as gold consolidates within a new trading range.
Despite silver prices already showing signs of climbing while gold retraced, there is still resistance at the $25.90 level. As silver hovers above $25 per ounce, analysts are optimistic about the metal’s potential to close the gap with gold and continue its upward momentum.
Overall, the precious metals market is poised for interesting developments in the coming months, with gold demand expected to dip while silver prices have the potential to rise and narrow the gap with gold. It will be important to keep an eye on market trends and fluctuations to make informed investment decisions.
