Gold and silver surge to record high

Gold prices soar to a historic pinnacle of $2,450 and silver at $32,28

By Farah Mourad | 20 May 2024

Market open
  • The EUR/USD pair recovered strongly

  • Investors are focused on upcoming comments from Federal Reserve officials

Today’s market volatility might be limited due to the absence of major macroeconomic data releases. However, upcoming speeches from FOMC members in the afternoon could provide further market direction.

Precious Metals

Gold prices have hit a new all-time high of $2,450 during Monday’s European session, driven by optimism over potential Federal Reserve rate cuts and rising geopolitical tensions involving Iran. As a helicopter crash in Iran, resulted in the death of President Ebrahim Raisi and other officials. So far no signs of foul play or external interference have been reported which is not scarring the markets.

Silver has also shown significant strength, breaking above the critical $30.00 resistance level and reaching its first target at $32.28, continuing its sharp upward trend.

Investors are keenly awaiting comments from Federal Reserve officials scheduled for later today, which could influence market dynamics.

In the forex market

The Japanese yen weakened among G10 currencies, while the Australian dollar exhibited strength. The EUR/USD pair has seen a strong recovery, breaking through a major technical resistance level that had been in place since December 2023, supporting its upward trend. The US Dollar (USD) has started the week on a weaker note, with the US Dollar Index retreating below 104.50 amid a shift towards risk-on sentiment.