Following a steep plunge, the precious metals market has begun to recover. Gold prices have once again broken through the psychological barrier of $5,000 per ounce, responding to renewed investor activity.
As reported by "Hvylya", this comes via Bloomberg.
As of February 5, spot gold prices rose by 1.2%. Silver is also demonstrating strong gains, climbing above the $90 per ounce mark. Analysts note that the current rebound has partially recouped last week's losses, when the market suffered its worst drop since 2013.
"While prices remained 11% below the January 29 all-time high at the close of Wednesday trading, year-to-date performance remains positive with a 15% gain," the report states.
Major financial players remain optimistic. Deutsche Bank reaffirmed its forecast of $6,000, while Goldman Sachs expects prices to reach $5,400 by year-end. Investment fund Fidelity, which offloaded some assets prior to the crash, is already considering a return to the market.
Traders are paying particular attention to the political factor in the US. President Donald Trump has issued a condition to Kevin Warsh, a potential nominee for Federal Reserve Chair.
Trump made it clear that he "will not support Warsh's nomination if he intends to raise interest rates."
This stance is crucial for the market, as a low-interest environment traditionally drives demand for precious metals, which are non-yielding assets.
We previously wrote about what to expect from the dollar exchange rate and gold prices in February.