Gold (XAUUSD) & Silver Price Forecast: 1,000 Tonnes Bought, Demand Surges – Rally Sustainable?

Gold (XAUUSD) and Silver (XAG) rally as 1,000 tonnes of central bank buying and a weaker dollar fuel demand. Can the breakout sustain?

Gold and silver stepped up on Monday, grabbing onto a three-week long bounce as investors did some portfolio house-keeping in the face of escalating trade tensions and a rapidly weakening US dollar. Gold futures rose by around 1-2% in a single day, marking their third week of gains in a row, while trading volumes in global derivatives picked up sharply – a sign that big institutions are getting back in on the action.

People in the industry point to the fact that many investors are taking out new hedging bets because the US just raised its import tariffs to 15% – a move that, if it sticks, will add about 0.3-0.5% points to inflation over the course of a year.