The economist spoke about the prospects for gold and silver this week

Gold and silver prices are well below their recent highs at the beginning of the week, but precious metals remain supported by expectations of a rate cut by the US Federal Reserve, geopolitical risks and high investor demand. Ilya Rusyaev, a business consultant and founder of the Rusyaev Club business community, told Izvestia on August 3.

He clarified that gold is currently trading around $4,100 per ounce, while silver is slightly below the $60 mark. The current levels look attractive to some investors after a sharp decline from the January peaks. Earlier, gold rose above $5,500 per ounce, while silver reached $116.

"The main factor for the market this week will be the American employment statistics. Weak labor market data may strengthen expectations of a Fed interest rate cut, which usually supports precious metals by weakening the dollar and lowering bond yields," the expert said, noting that in the case of strong employment figures, the situation may change, and gold and silver prices may come under pressure again.

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Prices should stabilize due to demand from central banks

Additional support for metals, according to Rusyaev, is provided by geopolitical risks. The aggravation of the situation around Iran and possible disruptions in global trade are increasing investors' interest in defensive assets.

In addition, central banks continue to increase their gold reserves. Industrial demand remains an important factor for silver, including from the solar energy and electronics industries.

Rusyaev noted that the physical silver market has been facing shortages for the fifth year in a row, which may also support prices. According to the expert's forecast, this week gold may be in the range of $4,000–4,250 per ounce, and silver — in the range of $ 55-60. At the same time, against the background of soft statistics on the United States, the probability of further growth in quotations remains higher.

Arina Kostryukova, Director of Currency and Precious Metals Markets at the Moscow Stock Exchange, said on June 21 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.