Precious metals trader Heraeus Precious Metals' China trading desk has provided its outlook on gold and silver price movements. The firm anticipates that gold prices will fluctuate within a range of $4,800 to $5,200 per ounce in the near term, while silver prices are expected to trade between $65 and $100 per ounce over the same period.

According to Heraeus, after hitting a new high near $5,600 per ounce, London gold experienced a significant correction but recently rebounded to around $5,000 per ounce, with volatility gradually decreasing. The newly nominated Federal Reserve Chair's advocacy for a policy mix of interest rate cuts and balance sheet reduction has reversed previous expectations that the Fed would maintain an expanding balance sheet. This shift triggered sharp corrections in gold, as well as across broader commodity and equity markets, causing gold to fall to as low as $4,400 per ounce at one point. However, the U.S. dollar remains weak. If the balance sheet reduction process does not proceed as planned, combined with ongoing global political and economic uncertainties, gold prices may continue to stay at elevated levels.

Regarding silver, Heraeus notes that it has also been affected by expectations of balance sheet reduction. Additionally, due to its stronger speculative nature and more severe overbought conditions, silver experienced a historically rare correction. Nevertheless, global physical inventories remain low, ETF holdings have not declined, and spot premiums remain high. Despite the significant price correction, the tightness in the silver spot market has not been fundamentally resolved. Future delivery conditions will need to be closely monitored.