Gold and silver to continue to appreciate - Julius Baer

Investing.com – With another day of gains in gold and silver futures, the Swiss group Julius Baer has decided to change its outlook on commodities to constructive. The group now believes that both metals have the potential for further increases, as stated in a note sent to clients and the market on Friday morning.

The group mentioned that, in addition to U.S. monetary policy, the gold market is still dominated by Asia. "We have to recognize that the region's willingness to pay for gold as a hedge against economic and geopolitical risks appears even greater than we expected," said Carsten Menke, head of next-generation research at Julius Baer.

Weaker-than-expected U.S. economic data have revived hopes for interest rate cuts by the Federal Reserve (Fed, the U.S. central bank), boosting gold and silver prices. This could "be the missing incentive for safe-haven seekers in the Western world to return to the markets," he added.

Central Bank Purchases in Focus

Central banks have been buying gold more for geopolitical reasons than economic ones, according to Julius Baer. In China, for example, there is a desire to reduce dependence on the U.S. dollar – important for avoiding potential sanctions.

The People's Bank of China is believed to be responsible for at least 30% to 50% of all central bank purchases over the past two years. Although it shows signs of being price-sensitive, "its willingness to pay has increased as gold prices rise," notes Julius Baer. It is expected that other monetary authorities will follow the same steps, moving away from the U.S. dollar.

***

Want to leverage your strategies with stocks of companies related to commodities?

Then come to InvestingPro! By becoming a member of InvestingPro, you get access to features such as:

  • ProPicks: AI-managed stock portfolios with proven results.
  • ProTips: Quick and straightforward tips to simplify complex financial information.
  • Advanced stock filter: Find the stocks that best meet your expectations based on hundreds of financial metrics.
  • Turbo navigation: Investing.com pages load much faster, without any ads.
  • Institutional-level financial data for thousands of stocks: Ideal for investors who want to conduct their own detailed evaluations.
  • And many more services to be added soon!

Enjoy all this with an extra discount on 1 or 2-year Pro and Pro+ plans. Enter the code INVESTIR and enjoy!

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.8% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services (UK) Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

www.onefinancialmarkets.com is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: