Gold up more than 40% YTD, poised for biggest annual gain since 1979, Saxo says

[stack of shiny gold bars 3d illustration]
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Gold prices are on course for their strongest one-year increase since 1979 after breaking above the $3,800/oz level, Saxo analysts said Wednesday, as futures have surged more than 40% so far this year, thanks to U.S. interest rate cuts, central bank buying and ETF inflows, as well as strong safe-haven demand due to persistent geopolitical uncertainties.

"The speed of the move underscores how shallow any corrections have been in recent weeks and months as dips continue to be met with fresh buying interest, a pattern consistent with broader macro support rather than speculative froth alone," Saxo said.

Meanwhile, silver's rally has been even sharper, topping $44/oz and surging more than 50% YTD, helped by structural demand growth from solar photovoltaics and electrification, as Saxo said silver's "dual identity as both a monetary and industrial metal has worked to its advantage.”

Gold futures pulled back Wednesday from record highs reached in the previous session, as investors awaited economic data due later this week for further clues on the Federal Reserve's policy path - weekly U.S. jobless claims data and the U.S. Personal Consumption Expenditures index, the Fed's preferred inflation gauge.

The U.S. dollar index climbed 0.6%, making dollar-priced bullion more expensive for other currency holders.

Front-month Comex gold (XAUUSD:CUR [https://seekingalpha.com/symbol/XAUUSD:CUR]) for September delivery settled -1.3% to $3,732.10/oz, its largest one-day dollar and percentage decline since August 11, and front-month Comex September silver (XAGUSD:CUR [https://seekingalpha.com/symbol/XAGUSD:CUR]) ended -0.9% to $43.777/oz, still the third-highest close in history for both metals.

ETFs: (NYSEARCA:GLD [https://seekingalpha.com/symbol/GLD]), (NYSEARCA:GDX [https://seekingalpha.com/symbol/GDX]), (GDXJ [https://seekingalpha.com/symbol/GDXJ]), (NYSEARCA:IAU [https://seekingalpha.com/symbol/IAU]), (NYSEARCA:NUGT [https://seekingalpha.com/symbol/NUGT]), (PHYS [https://seekingalpha.com/symbol/PHYS]), (GLDM [https://seekingalpha.com/symbol/GLDM]), (AAAU [https://seekingalpha.com/symbol/AAAU]), (SGOL [https://seekingalpha.com/symbol/SGOL]), (RING [https://seekingalpha.com/symbol/RING]), (BAR [https://seekingalpha.com/symbol/BAR]), (OUNZ [https://seekingalpha.com/symbol/OUNZ]), (SLV [https://seekingalpha.com/symbol/SLV]), (PSLV [https://seekingalpha.com/symbol/PSLV]), (SIVR [https://seekingalpha.com/symbol/SIVR]), (SIL [https://seekingalpha.com/symbol/SIL]), (SILJ [https://seekingalpha.com/symbol/SILJ])

MORE ON GOLD AND GOLD MINERS

* Gold Rally Driven By Massive ETF Inflows [https://seekingalpha.com/article/4825595-gold-rally-driven-by-massive-etf-inflows]
* A Comparative Analysis Of Franco-Nevada, Wheaton Precious Metals, And Royal Gold [https://seekingalpha.com/article/4825128-comparative-analysis-of-franco-nevada-wheaton-precious-metals-and-royal-gold]
* Gold Back On Track [https://seekingalpha.com/article/4825016-gold-back-on-track]