The State Duma announced the possible growth of the precious metals market this week

The precious metals market may gain grounds for growth this week against the background of macroeconomic and geopolitical factors. Alexey Govyrin, a State Duma deputy and member of the Committee on Small and Medium-sized Enterprises (United Russia faction), told Izvestia on June 22.

"After the Federal Reserve meeting on June 16-17, gold adjusted to the range of $4,135-4,200 per ounce. At the same time, despite the rate remaining in the range of 3.50–3.75%, almost half of the members of the Fed committee admit its increase before the end of the year. Against this background, the market reacted with a third consecutive weekly drawdown, but the "hawkish" scenario has already been largely taken into account in prices, which creates technical prerequisites for a rebound," the parliamentarian explained.

He also drew attention to the reduction of geopolitical tensions after the signing of a memorandum of understanding between the parties in Versailles on June 17, providing for a cease-fire and the opening of the Strait of Hormuz. As of June 22, the negotiators are reporting progress, which has already been reflected in the commodity markets.

Gold mine: will the precious metal fall indefinitely

Prices should stabilize due to demand from central banks

So, oil has lost more than 17% over the past month, and the cost of WTI has dropped to about $77 per barrel. According to the MP, this helps to reduce inflationary pressure and reduces the likelihood of further tightening of monetary policy. Silver is trading near $64 per ounce after a weekly decline of about 4.5%.

Govrin also noted that investment banks maintain a long-term positive view of the market: for example, Goldman Sachs lowered its short-term target from $5,400 to $4,900, but still expects growth of about 17% by the end of 2026. According to him, purchases from central banks continue to provide additional support to the market.

Together, these factors, the deputy believes, create the conditions for a possible recovery in prices for precious metals in the near future.

On June 21, Arina Kostryukova, Director of the Currency and Precious Metals Markets at the Moscow Stock Exchange, announced that Russian investors had significantly increased their investments in precious metals. According to the Moscow Stock Exchange, about 76% of private investors' investments in precious metals are in gold, and another 22% are in silver.