Insignia Consultants | Gold to continue outperforming silver, Goldman Sachs says
Gold to continue outperforming silver, Goldman Sachs says
May 5 (Reuters) - Gold will continue to outperform silver, Goldman Sachs said in a note on Monday, citing strong central bank demand for bullion as a factor that has structurally elevated the gold-silver price ratio.
As a result, the bank does not expect silver to catch up with the ongoing gold rally.
"With Chinese solar production now slowing amid oversupply, high recession risk, and central bank gold buying remaining strong in 2025, we expect gold to continue out-glittering silver," the bank said.
However, it added that, given the strong correlation in flows, renewed demand for gold in 2025 was likely to boost silver prices too.
Spot gold has gained over 26% so far this year, and hit a record high of $3,500.05 an ounce in April, also aided by geopolitical uncertainty and increased flows into gold-backed exchange-traded funds. Silver prices are currently trading at $32.4 per ounce, up 12% so far in 2025.
