Top Stories This Week: Gold Price Hits US$2,300, Silver Price Breaks US$27

The gold price hit a major milestone this week, breaking the US$2,300 per ounce mark for the first time ever.

The yellow metal's rise has been a long time coming, but in some ways it's been quicker than expected. I spoke with many experts at the Prospectors & Developers Association of Canada convention about a month ago, and while a number of them thought US$2,300 was in the cards for 2024, they didn't necessarily see it happening so fast.

Gold's increase came even as US Federal Reserve Chair Jerome Powell said the central bank needs to see more evidence that inflation is heading toward its 2 percent target before it begins cutting interest rates.

I've repeatedly heard from industry commentators that gold will really start moving when the Fed pivots, and it's notable to see it remain strong without any firm commitment on when that turnaround will happen.

Ross Norman of Metals Daily wrote an interesting article about what's going on — in it, he explains why gold's price jump this week has left him "non-plussed," running through various possible reasons for its increase:

"This is possibly the longest apology I have ever penned, but this gold rally mystifies me.

Quite possibly it is a combination of Chinese and official sector buying from other routes, coupled in some sectors with mounting uncertainty over US debt and its manageability."

While gold's ever-increasing price is grabbing headlines, silver shouldn't be forgotten. It broke through US$27 per ounce midway through the week, and after a brief pullback was back above that point on Friday (April 5) morning.

Experts often emphasize that silver tends to initially lag behind gold, but then outperforms once it gets going. Whether that holds true during this cycle remains to be seen, but this week's movement has definitely created some excitement.

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

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