Turning to silver, Christian expects the metal to remain strong and volatile, with prices already near record levels of $48-54 per ounce. He said fabrication demand remains high, though short-term corrections are possible as refineries work through old silver scrap that’s re-entering the market.
On the demand front, central bank buying has slowed in 2025, contrary to popular perception. Christian clarified that central banks have purchased only about 6 million ounces of gold so far this year—far less than market estimates—mainly because of the higher prices.
Also Read: India sees record festive gold demand despite high prices: World Gold Council’s Sachin JainHe added that physical gold demand from investors was robust through most of the year but has cooled recently, as short-term players dominate trading activity. Much of the recent price movement, he said, has come from futures, ETFs, and momentum traders looking to profit from quick swings. “They don’t want physical gold or long-term investments. They’re looking to get in and get out quickly,” Christian said.
Christian also flagged the US government shutdown as a growing concern, warning that it is cutting into economic output and investor confidence. He said the shutdown has already reduced US gross domestic product (GDP) by up to 0.8%, further weakening an economy already facing job losses and a housing slowdown.
Also Read: Gold prices may stabilise near $4,000 an ounce, says HSBC strategist
Ultimately, Christian believes that both gold and silver prices will continue to be driven by investment demand as investors look for safe havens amid political instability and financial uncertainty. “The major factor determining prices, as with gold, is investment demand,” he said, adding that global anxieties will keep precious metals firmly in focus.
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