Gold prices remain firmly above $2,500, and silver has been able to hold onto the $30 level.

Market participants are now extremely confident in the kickoff of an extended Fed rate-cutting campaign in September, especially in light of weak employment numbers.

The stock market, however, continues to trade near its all-time highs — even as volatility increases. A correction or extended downturn in the stock market would likely provide a new catalyst for gold, but negative stock market action has obviously been unnecessary for gold to rally.

Meanwhile, Western demand for physical bullion and even ETF shares backed by bullion has actually remained modest for most of the year — especially as compared to 2020-2023.

It’s demand from Asia as well as central banks that has been the driver for higher gold prices since late last year. 

A pickup in buying activity in North America and Europe would, however, would add rocket fuel to the existing very strong global demand picture — and silver would be expected to rise with gold as well.