Gold prices have risen about 15% this month, while silver prices have jumped around 19%. Together, gold and silver have gained nearly $5 trillion in market value in August, based on an analysis from Bull Theory. Gold and silver prices are ending August with a sharp rally. The rally has added huge value to the precious metals market.
Because it provides another source of demand for gold, central bank buying is important. Central banks are continuing to support gold demand. Continued purchases can help support prices even when other parts of the market become weaker.
Despite earlier concerns that central banks could reduce their purchases, recent data show that they are still adding gold to their reserves.
He said gold is still about 15% below its recent highs, which makes the current market conditions more balanced.
Truist Chief Investment Officer Keith Lerner recently upgraded his view on gold to neutral, saying the market conditions have improved, according to a note cited by Yahoo Finance. Lerner said investors should keep an open mind and follow the available evidence. The combination of stabilising real yields, central bank demand, a softer dollar, geopolitical risks and continued investor interest is supporting the metal, according to Lerner’s analysis.
Truist has also become more positive on gold. Gold could remain strong through the end of August if these factors continue.
For silver, the outlook is being driven by both investment demand and industrial demand. The metal is benefiting from the broader precious-metals rally while also facing strong demand from AI infrastructure, electrical grids and advanced electronics.
