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, reports Reuters.
As a result, the bank does not expect silver to catch up with the ongoing gold rally.
The gold-silver ratio, which measures the number of silver ounces needed to buy an ounce of gold, currently stands at around 102, versus about 84.7 a year ago.
"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.
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.
Goldman reiterated its structural bullish gold view with a base case price of $3,700 an ounce by year-end and $4,000 by mid-2026.
Gold to continue outperforming silver, says Goldman Sachs
FE Team | Published: May 05, 2025 23:51:02
Gold to continue outperforming silver, says Goldman Sachs
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