Gold price gains ground, but silver upside greater as ECB delays LTROs relief
The price of gold has surged in recent weeks, with the commodity benefitting from global economic slowdown fears and macroeconomic uncertainties, but silver has a larger potential upside after the ECB delays LTRO relief.
The price of gold came close to hitting its highest level since March 28 on Thursday, with the commodity likely to continue its ascent in the coming weeks as investors look to the save-haven asset as global economic slowdown fears heighten.
Over the last 5 days, the price of gold has rallied from a recent low of $1,280.98 an ounce last Thursday to high of $1.310.69 on Wednesday.
But with a myriad of macroeconomic headwinds like Brexit and ongoing trade disputes between the US and China negatively impacting global stocks gold could easily see further gains in the coming weeks.
Gold prices were buoyed on Wednesday after the European Central Bank (ECB) once again opted to leave key interest rates negative at -0.25% and has delayed already promised long-term refinancing operations (LRTOs) aimed at easing the impact of low rates on eurozone banks.
‘One needs to search for relatively under-owned late-cycle inflation hedges that can piggy-back recovering stock markets,’ Scotia Bank said in a recent note to investors.
‘Gold should do well under that thinking, but there are other higher-beta real assets – such as platinum, copper and silver – that have better upside potential, given [the] ultra-accommodative pivot by global central banks.’
Silver prices have found support at $15.25 an ounce levels, hovering between $15 to 15.50 since early March.
Gold rate today: price chart
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
Speculate on commodities
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
Live prices on most popular markets
You might be interested in…
Find out what charges your trades could incur with our transparent fee structure.
Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.
Stay on top of upcoming market-moving events with our customisable economic calendar.