Gold and Silver Extend Rally as Expert Sees More Upside

Gold and silver climbed to fresh highs for a second consecutive session, driven by renewed safe-haven demand and ongoing macro uncertainty. David Neuhauser, chief investment officer at Livermore Partners, told CNBC's Access Middle East that gold still has room to run, echoing a growing chorus of analysts who point to several supportive forces behind the move.

Investors have been closely watching central bank policy, the U.S. dollar and inflation expectations. A softer dollar often boosts dollar-priced commodities such as gold and silver, while signs that inflation may remain sticky can increase their appeal as stores of value. At the same time, expectations around interest rates and real yields remain central to precious-metals trajectories: lower real yields generally lift gold, while higher yields can sap some of its momentum.

ETF flows have also played a role, with exchange-traded products for gold and silver drawing renewed interest from portfolio managers and retail buyers seeking diversification. Physical demand from central banks and jewelry markets adds another layer of support for gold, whereas silver’s outlook is influenced by both investment demand and its sizable industrial use — from electronics to solar panels — which can tighten available supply if manufacturing stays robust.

Supply-side constraints in mining and longer lead times for new production capacity mean bullion markets are sensitive to shifts in demand. Technical momentum after consecutive daily gains often attracts momentum traders, amplifying short-term moves. At the same time, market participants caution that metals can remain volatile, reacting quickly to swings in economic data, rate guidance and geopolitical developments.

Neuhauser’s assessment underscores a view that, absent a decisive shift in monetary policy or a sharp rally in the dollar, gold could continue to find buyers. That said, analysts advise monitoring key indicators — U.S. inflation prints, central-bank commentary and real-yield trends — to gauge whether the current advance can be sustained.

For investors, the current environment presents both opportunity and risk: precious metals may offer a hedge against uncertainty, but timing and position sizing matter given potential short-term reversals. Overall, the combination of macro drivers, ETF flows and tight supply helps explain why gold and silver recently extended their gains and why some strategists see further upside.