The gold price remains above the now solid resistance line of $3,300 per ounce but has not really gained momentum for some time – especially after the agreements between the USA and Japan, as well as the European Union, in the tariff dispute increased the risk appetite of many investors. However, other precious metals could have more momentum, analysts believe.
Commerzbank also believes that due to decreasing geopolitical tensions, the gold price will continue to trade within a range for now – likely until the US Federal Reserve gives indications of future interest rate cuts.
The latest meeting of the Federal Reserve’s Open Market Committee began yesterday, Tuesday, and will conclude today with a press conference by Fed Chair Jerome Powell. It is generally expected that the US central bank will maintain its neutral monetary policy stance for the time being.
However, according to a Kitco report, Commerzbank analysts pointed out that any signals of a restrained monetary policy could support the gold price. So far, markets continue to assume that the next interest rate cuts will begin in September.
Silver Expected to End the Year at $39 per Ounce
In contrast to the development of the gold price, Commerzbank expects silver and the platinum group metals to perform better. Analysts recently raised their target for the silver price from $37 to $39 per ounce.
Furthermore, experts now expect platinum to end the year at $1,350 per ounce, whereas previously only $1,250 per ounce was anticipated. Palladium should also rise, and Commerzbank expects the palladium price to be $1,200 per ounce at the end of 2025 (previously $1,100 per ounce).
This means that Commerzbank considers the majority of the recent price increase in all three metals to be sustainable, as it previously reduced their significant undervaluation compared to gold. The gold/silver ratio is now at 86, slightly above the long-term average, which can also be said about the price ratio of gold and platinum.
Analysts are generally positive about the platinum group metals but also emphasize that a higher gold price is crucial for the performance of the broader precious metals sector. In their view, silver and platinum are now likely to move largely in parallel with the gold price, while palladium is likely to perform somewhat weaker due to slightly less favorable fundamentals.
