Can Precious Metals Continue to Rally?

By: Anneken Tappe · May 30, 2024 · Reading Time: 2 minutes

Gold prices have been rallying, and earlier this month, the precious metal hit a record high of roughly $2,440 per ounce. Prices have come down since then, but the metals rally might not be over yet.

High Demand

Gold is a so-called safe haven investment that often sees higher demand during times of trouble, be it in the markets on the political stage. And the global geopolitical turmoil of the moment is a key part of the gold rally of this spring. It’s also the reason some analysts expect metals prices will continue to climb higher as we move into the summer. After all, geopolitical stresses remain unresolved.

Central banks are also keen to have gold in their vaults – literally. And despite surging prices, demand for gold jewelry has remained strong. Much of this demand has been driven by Chinese consumers. In 2023, gold jewelry consumption in China rose 10% annually.

Limited supply is also part of the high demand for metals. This extends beyond gold, too. For example, tighter supply of copper, which is key for electric vehicles, means higher demand. The International Copper Study Group recently slashed its copper production forecasts for the remainder of the year thanks to several delays in mining projects, which could put upward pressure on the metal’s price.

Silver has also seen strong demand lately. The metal is widely used in technology like cars, solar panels, and smartphones.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

Communication of SoFi Wealth LLC an SEC Registered Investment Advisor

SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

TLS 1.2 Encrypted
Equal Housing Lender