Gold prices near record high as market pressures push precious metals higher

Yahoo Finance markets reporter Ines Ferre joins the Live show to observe price trends seen in gold and silver commodities as gold futures surge above $2,000.

Video transcript

SEANA SMITH: WE also want to get you up to speed on the market action here, because an hour to go in the day, we got the Dow up 74 points, S&P and NASDAQ in the red with the NASDAQ still the laggard of the session, off just about 1%. First, let's also get a check on gold, because gold has certainly been a trender today-- just above 2,000, right near record levels. Ines Ferre has been closely watching that move for us. Ines, what can you tell us?

INES FERRE: Yeah, that's right, Seana. And gold bugs are really loving this moment, with gold above the $2,000 an ounce a level inching towards a record high. It could be a series of days before this happens. Look, the JOLTS report sent gold higher today. It has flirted with this $2,000 level.

But up until now, not closing on it yesterday, it did close at a 2023 high. Traders are basically betting that the Fed is going to have to pivot to, perhaps, cut rates later this year. And gold tends to do well under this scenario when the markets believe that the Fed is pivoting or the tightening cycle is just about over, when the 10 year Treasury yield is lower, as we have seen it, and also when the US dollar is lower, as we have seen it lowering.

And so that all helps buoy gold prices. Now, we saw an acceleration also when it came to gold prices in March, this is after the banking crisis. With that banking crisis, we saw investors flock to gold. And in fact, I spoke to one analyst that said most certainly there could have been flows of money that were going from the banks into assets like gold.

Bank of America wrote a note saying, a new all time closing high in gold prices would go a long way in signaling significantly larger upside in 2023 to 2025. So that's the idea-- that gold would do well this year going into next year as well. Seana.

SEANA SMITH: Ines, taking a look at some of the other metals, we're also seeing this movement to the upside in silver too.

INES FERRE: Yeah, that's right-- silver around $25 an ounce level. Its 52 week high is $26.24. Look, it does have an industrial use. So I did speak to one analyst who told me that silver-- he believes that silver will go higher, certainly.

But he says if we go into a severe recession, because it has an industrial use, you could see a drop in demand when it comes to silver. Nevertheless, he is bullish for silver in the next couple of years.

SEANA SMITH: All right, Ines, thanks so much.