Gold price gains ground, but silver upside greater as ECB delays LTROs relief

The price of gold came close to hitting its highest level since March 28 on Thursday, with the commodity likely to continue its ascent in the coming weeks as investors look to the save-haven asset as global economic slowdown fears heighten.

Over the last 5 days, the price of gold has rallied from a recent low of $1,280.98 an ounce last Thursday to high of $1.310.69 on Wednesday.

But with a myriad of macroeconomic headwinds like Brexit and ongoing trade disputes between the US and China negatively impacting global stocks gold could easily see further gains in the coming weeks.

Gold prices were buoyed on Wednesday after the European Central Bank (ECB) once again opted to leave key interest rates negative at -0.25% and has delayed already promised long-term refinancing operations (LRTOs) aimed at easing the impact of low rates on eurozone banks.

‘One needs to search for relatively under-owned late-cycle inflation hedges that can piggy-back recovering stock markets,’ Scotia Bank said in a recent note to investors.

‘Gold should do well under that thinking, but there are other higher-beta real assets – such as platinum, copper and silver – that have better upside potential, given [the] ultra-accommodative pivot by global central banks.’

Silver prices have found support at $15.25 an ounce levels, hovering between $15 to 15.50 since early March.

Gold rate today: price chart