Investors still cautious, for now

Over the past month, precious metal prices have posted decent gains, led by silver. While the technical outlook is improving, investor sentiment remains broadly bearish. This suggests further price upside if speculative demand returns to the market. The macroeconomic outlook should also continue to support precious metals prices as the recent weakness in US economic data is likely to delay the first rate hike by the Fed to September. Overall, we remain positive on all four of the main precious metals but expect the more “industrial” PMs to outperform this year.