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Home Spot Gold Precious Metals Surge as China’s Stimulus Boosts Demand

Precious Metals Surge as China’s Stimulus Boosts Demand

by anna

Precious metals are experiencing a robust rally, with gold hitting new record highs and silver and platinum extending their gains, fueled by economic stimulus from China, according to Vladimir Zernov, an analyst at FX Empire.

Gold surged to uncharted territory on Tuesday after China’s central bank cut its lending rates and reduced the reserve requirement ratio for commercial banks. These moves are aimed at reviving the country’s slowing economy, which in turn supports demand for commodities, including precious metals.

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“If gold breaks above the $2,650 mark, it could head towards $2,700,” Zernov noted, while cautioning that the Relative Strength Index (RSI) indicates the market is overbought, increasing the risk of a pullback.

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By the afternoon, spot gold had gained 1.17%, trading at $2,659.47 per ounce. The metal hit a fresh all-time high of $2,661.28 shortly before 3:30 p.m. EDT.

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Silver is also pushing against its upper resistance levels, with investors optimistic that China’s stimulus will drive higher industrial demand. “If silver surpasses the resistance at $31.45 to $31.75, it could advance toward the next resistance in the $34.00 to $34.25 range,” Zernov observed. Spot silver maintained its strength, holding above $32 per ounce and last trading at $32.189, reflecting a nearly 5% daily gain.

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Platinum joined the rally as well, buoyed by expectations that China’s measures will boost industrial use of the metal. “If platinum clears the resistance zone of $975 to $985, it could climb to test the next resistance between $1,020 and $1,030,” Zernov added. Platinum prices climbed steadily throughout the day, ending with a 3.07% gain at $987.26.

The broad rally across precious metals highlights the growing market optimism around China’s stimulus and its potential to reignite global commodity demand.

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