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Top Stories This Week: Gold, Silver Prices Rise as BRICS Nations Meet in Russia
Oct. 25, 2024 02:00PM PST
It was another record-setting week for gold, while silver approached the US$35 per ounce level. Meanwhile, the BRICS Summit was a major focus for globally minded investors.
It was another record-setting week for gold, which rose to nearly US$2,760 per ounce on Wednesday (October 23). It dipped lower after that, but finished Friday (October 25) close to the US$2,750 level.
Experts continue pointing to familiar factors as price drivers. Central bank demand is providing support, while safe-haven buying is also in the mix as conflict continues between Russia and Ukraine, as well as in the Middle East.
Aside from that, the fast-approaching US election is adding to gold's appeal.
Silver was also on the move, approaching the US$35 per ounce mark. While the white metal is known to lag behind gold and currently remains well off its all-time high of nearly US$50, it touched levels not seen since early 2012.
As both precious metals climb, market participants are keen to know whether these rapid increases are sustainable.
Keith Weiner of Monetary Metals believes gold's price point has become more durable due to a key shift in the sector.
"We are in a different market now — and this market now is not being driven by futures, it's being driven by metal. So as the price has gone up it's been driven ... by the buying of metal, which means that the fundamental (price) keeps moving up. And so the fundamental (price) is above the market price and the market price moves up," he said.
"It doesn't mean there can't be a correction ... it's just saying that there's a tension in the market which tends to be pulling upward, which is evidence of a bull market, obviously," added Weiner during the conversation.
Click here for the full interview with Weiner, which also includes his thoughts on the outlook for silver.
Bullet briefing — What happened at the BRICS Summit?
The latest BRICS Summit, held this week in Kazan, Russia, was a major focus for globally minded investors this week. The theme of the much-watched gathering was "Strengthening Multilateralism for Just Global Development and Security," and it finished with the release of a 134 item declaration from participants.
Among the many points listed, the BRICS nations highlighted their commitment to enhancing financial cooperation between members, pointing to the benefits of cross-border payment instruments and to the use of local currencies in transactions between BRICS countries and their trading partners.
"We recognise the widespread benefits of faster, low cost, more efficient, transparent, safe and inclusive cross-border payment instruments built upon the principle of minimizing trade barriers and non-discriminatory access" — Kazan Declaration
Images are circulating of Russian President Vladimir Putin holding a mockup of a "BRICS bill," but it's worth noting that the document doesn't actually mention the creation of a BRICS currency. This has been a hot topic with various resource sector experts, who have discussed the role gold could play in this type of setup.
Putin did, however, emphasize his concerns about the weaponization of the US dollar, presenting Russia's proposed BRICS Bridge messaging system. It's been described as an alternative to SWIFT, a messaging system used by banks around the world to send and receive money transfer instructions and other information.
"We are not rejecting or fighting the dollar. But if we are not given the chance to use it, what can we do? We are then forced to look for alternatives" — Vladimir Putin, Russia
Various Russian banks were ousted from SWIFT after the country's invasion of Ukraine in 2022.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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