“Goldman Sachs: Silver Won’t Keep Pace With Gold Rally” Says Bank

New Delhi [India], May 8 (ANI):
Gold
Will keep surpassing silver in the precious metals market, as stated.
Gold
Goldman Sachs in a recent report.

The historical relationship between gold and silver prices, usually ranging from 45 to 80, was reportedly “breached” for the first time since 2022. This shift can be linked to significant increases in gold acquisitions by central banks; however, this pattern hasn’t been mirrored by silver, often considered gold’s counterpart.
Silver
.

The report stated, “We do not anticipate silver will match the surge in gold prices due to increased central bank interest in gold, which has fundamentally raised the gold-to-silver price ratio.”

Nevertheless, silver has received support from the
China
Despite the surge in solar energy, this industrial demand isn’t sufficient to counterbalance the significant purchases of gold made by central banks.

Gold
‘s appeal to central banks is attributed to its physical properties, making it more suitable for reserve management.
Gold
is rarer, has greater value per ounce, and is denser compared to silver, making storage, transportation, and security simpler.

The report indicates that despite potential deceleration in China’s solar manufacturing sector and ongoing economic downturn concerns, central banks’ purchases of gold are anticipated to stay resilient throughout 2025, thereby bolstering gold’s continued strong showing.

As the flow correlations remain strong, an increased interest in gold during 2025 is expected to boost silver prices too. This was noticeable during the rally of the first quarter in 2025, where ETF purchases and speculative trading bolstered both metals.
Gold
man Sachs said.

Gold
Goldman Sachs continues to be optimistic about gold, projecting a baseline target of $3,700 per ounce by year-end and $4,000 by mid-2026. They suggest that factors such as concerns over U.S. governance and institutional credibility, a shift towards safer assets, and more aggressive Federal Reserve interest-rate reductions could drive gold prices significantly higher than their already positive forecast, potentially leading to these levels during what they see as a possible U.S.-driven policy-induced economic downturn.

Even though the report suggests that should a recession happen, they anticipate an increase in ETF inflows which could push the gold price up to $3,880 by year-end. Furthermore, under more severe circumstances where concerns about potential Federal Reserve actions or shifts in U.S. reserve policies intensify, their estimates indicate that gold might reasonably reach close to $4,500 per ounce by the end of 2025. (ANI)