Solomon Global: Geopolitics, ISM Shock, Bargain Miners and Silver’s 13-Year High
Gold breaches $3400 and JP Morgan forecasts $4100; silver hits $36
From renewed geopolitical worries to poor economic data, this week’s gold headlines underline a recurring theme: uncertainty reigns. The yellow metal surged back toward recent highs as investors sought safety. Elsewhere, it looks like mining equities are at a steep discount. Meanwhile, silver — the Devil’s Metal — has hit its highest level in 13 years.
Here are the stories you need to know…
Gold surges to near one-month high as risk-off sentiment returns
Ukraine’s drone attacks deep into Russia and Putin’s subsequent vow to take revenge has lit a fire under gold again, with the spot price rallying to a high of $3,406.42 this week. The intensifying situation in Gaza, which prompted the head of the International Committee of the Red Cross to describe Gaza as “worse than hell on earth” has also brought the safe-haven appeal of bullion to the fore once more.
Read more: Gold price surges near one-month peak as geopolitical risks mount
Poor ISM data boosts bullion demand
The US economic picture also had investors jittery this week. Gold made gains after the Institute for Supply Management (ISM) showed that business activity in the services sector contracted for the first time in almost a year highlighting general economic slowdown. Its report also noted stubborn inflation pressures.
Read more: Gold price surges on weak US ISM report, trade tensions boost safe-haven demand
Central bank demand slows to lowest level of 2025, but African banks plan to boost gold reserves
Gold buying by central banks eased in April, with net purchases totalling 12 tonnes — 12% lower than the previous month, according to the World Gold Council. However, Turkey, India, and Kazakhstan were among notable buyers and a number of African banks said they were looking to add gold to their reserves.
Read more: Central bank gold buying slowed in April
Silver hits 13-year high
Silver broke through $36 this week, it’s highest level in more than 13 years. The so-called ‘devil’s metal’ has made gains of over 9% over the course of the trading week. MarketWatch quoted one analyst as saying that the technical picture is very bullish for further gains.
Read more: Silver prices just hit a 13-year high. More gains could be on the way.
Mining stocks: the bargain of the century?
While bullion has been climbing, gold mining shares still look undervalued and are increasingly disconnected from the spot price according to JP Morgan analysts call. In a report cited by This is Money, the bank argues there’s room for substantial upside. It provided a bullish forecast for the precious metal of $4,100 an ounce for 2026.
Read more: Why gold mining shares are too cheap, according to JP Morgan analysts
Market snapshot:
- Gold: trading near $3,365–3,370/oz, with eyes again on $3,400
- Silver: surging into the $36-$36.30/oz range — its strongest in over a decade.
