Precious metals are experiencing strong gains on Thursday, with gold nearing record highs, silver approaching the $30 mark, and platinum testing key resistance levels. This surge comes as central banks signal a shift towards more dovish monetary policies, according to Vladimir Zernov, an analyst at FX Empire.
Gold rallied sharply after the European Central Bank (ECB) cut its interest rate from 4.25% to 3.65%, fueling expectations of further rate cuts from the U.S. Federal Reserve. “Gold tested historic highs following the ECB’s rate cut,” Zernov noted, adding that analysts anticipate the Fed will initiate a new cycle of rate reductions next week, which is likely to bolster gold and other precious metals.
Zernov said gold could challenge the $2,600 mark if it closes above $2,550 per ounce, noting that the Relative Strength Index (RSI) is still moderate, allowing for further momentum.
Silver has also shown significant gains, driven by a pullback in the gold/silver ratio to the 85.50 level. Zernov pointed out that if silver breaks above $30 per ounce, it could aim for the next resistance range between $31.45 and $31.75.
Platinum is joining the rally, benefiting from the broader strength in precious metals markets. Zernov highlighted that platinum is approaching critical resistance levels between $975 and $985 per ounce, with the potential to climb to the next resistance at $1,020 to $1,030 if it breaks through.
As of the latest data, spot gold is trading near session highs at $2,556.72 per ounce, up 1.80%, while silver is just 15 cents shy of $30 per ounce, gaining 3.95%. Platinum, in one of its strongest sessions recently, is trading at $979 per ounce, up 2.85%.
