Gold, silver prices hold steady with 'underlying bullish trend' in place

Core Insights - Gold and silver prices are experiencing significant upward momentum, with gold futures around $4,300 and silver nearing its record of over $64, driven by expectations of looser monetary policy from the Federal Reserve [1][2][4]. Group 1: Market Dynamics - The Federal Reserve's recent interest rate cut has contributed to the rise in gold and silver prices, indicating a potential continuation of this trend into 2026 [2][4]. - The US dollar index is under pressure, which is lifting commodity prices, including gold [3][4]. - Analysts anticipate that upcoming US nonfarm payroll data could influence gold prices, with a slowdown likely reinforcing bets on further rate cuts [3][4]. Group 2: Future Projections - UBS strategists predict gold prices will be supported by lower real yields and continued weakness in the US dollar, forecasting a price of $4,500 per ounce by June 2026 [4]. - Goldman Sachs maintains a "structurally bullish" outlook for gold, citing robust central bank demand, with potential for higher prices if US investors increase their allocations [5][6]. - Analysts suggest that if investor diversification increases, there could be significant upside to the end-2026 gold price forecast of $4,900 [6].