Discussing Gold and Silver’s Rally with the World Gold Council

Precious metal markets surged overnight, with gold rallying back toward AUD $6,500 per troy ounce (oz), while silver has pushed back above AUD $105oz.

The sharp move higher happened against a backdrop of surging risk assets, with the S&P 500 also rallying, now up 11% in the last month. Gold was due to bounce, with this move higher supported by an apparent cessation of hostilities in the Middle East boosting almost all markets—with the obvious exception of oil, which fell more than 6% overnight.

The current state of the precious metal market is a topic we discussed at length earlier this week with John Reade, Senior Market Strategist at the World Gold Council. John visited our Global Flagship in Sydney to speak to a range of institutional investors and clients, alongside my colleague Nicholas Frappell, Global Head Institutional Markets at our sister company ABC Refinery.

The discussion with John can be viewed above, with topics covered including:

• A review of the record-breaking rally in gold that we saw leading into end-January, what the key demand segments that drove the rally were, which regions dominated, and which areas held up better than expected.

• The likelihood of gold re-testing USD $4,000oz, or whether the sell off we saw into late March was already the low for this corrective cycle, and why this consolidation is healthy for the market.

• The outlook for central bank gold demand, and why the war in Iran might have some short-term impacts on official sector buying.

• Why gold is a ‘grown up’ financial asset, and why it is OK and indeed appropriate to sell gold in certain environments, especially when factoring in asset allocation within a portfolio.

• The growth of gold demand from High Net Worth and Family Offices.

• The debate about whether gold is ‘broken’ because it fell after the war with Iran started, or whether we are likely to see new highs again soon.

• Key insights for Australian investors looking to invest in gold, and the need to be owned as a discrete and specific allocation within a portfolio.

Thank you for choosing ABC Bullion.

Jordan Eliseo
General Manager, ABC Bullion

Luke Tyler
Senior Analyst, ABC Bullion

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