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Gold, silver, and copper prices hit record highs amid thin Black Friday trade and CME outage
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Gold futures rose 1.25% to $4,269.80 an ounce, extending a four-month rally
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Silver prices surged 5.9% to $56.53 an ounce due to supply shortages in London
Gold, silver, and copper prices extended their record rally on Friday amid thin trade due to Black Friday, and an outage at CME trade platform. The latter two had scaled a fresh high on supply concerns in the previous session. According to analysts, the metals will continue to get costlier as the prospects for further monetary unwinding in the US become brighter.
Gold prices gained for the fourth consecutive months. The precious metal's February futures settled 1.25% higher at $4,269.80 an ounce on Friday.
"Immediate resistance is seen near $4,286, and a sustained close above this level can extend the rally toward $4,300–$4,400. As long as Gold holds above the rising slope support near $4,200, the broader structure remains constructively bullish," said Ponmudi R, CEO, Enrich Money.
However, a dip below $4,200 may lead to a corrective retest toward $4,080. Overall, the current structure clearly signals that volatility expansion on the upside is approaching fast, he said.
Silver prices jumped 5.9% to new high of $56.53 an ounce on Friday because of a supply shortage in London, its dominant trading hub. Although 54 million troy ounces of the white metal arrived, the prices remained high, according to Bloomberg. Silver prices also soared as an outage at CME triggered aggressive hedging.
According to Bloomberg, Silver prices have surged more than 90% in the current calendar year.
Strong fundamental structure has driven the rally in white metal rather than speculations. For the fifth consecutive year, a record global deficit of 150–187 million ounces was reported because around industries consuming more than the annual the supplies, according to Pormundi R.
"This is not a replay of the 1980 speculative cycle. Silver is no longer the 'poor man’s gold'; it has evolved into a strategic industrial metal entering a full-scale, structurally driven global bull market," he said.
Metal prices are also surging as recent US Federal Reserve officials' dovish remarks, and late economic data releases post government shutdown are fuelling hopes of rate cuts. Around 86.4% Fed fund future traders are expecting a 25-basis-point rate cut, according to data on CME FedWatch tool.
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