Rhona O'Connell, Head of Market Analysis for EMEA and Asia at StoneX, notes that gold’s recent price stagnation reflects a shift in investor priorities. While historically viewed as an inflation hedge, bullion has recently functioned as a liquidity source during equity market pullbacks. O'Connell highlights that speculative interest has largely been purged from the market over the last six months, potentially providing a floor for prices near the $4,000 mark as physical buyers return.

Central bank activity remains a critical support pillar, with 89% of respondents in a recent World Gold Council survey anticipating an increase in their reserves over the coming year. This aligns with broader shifts in China, where StoneX research identifies a 4,000-tonne discrepancy in local supply-demand balances, suggesting significant non-PBoC accumulation. Regarding silver, the firm expects the metal to mirror gold’s volatility, trading between $55 and $60 per ounce. While silver currently relies on gold for price direction, StoneX anticipates that long-term industrial demand—driven by AI chip production and solar technology—will eventually decouple silver from traditional gold-ratio metrics.