Gold Breakout Serves as Buy Signal, But No Fresh Record Expected This Year, Analyst Says

Analyst Florian Grummes has boosted his precious metals allocation from 50% to 80%, targeting junior miners instead of major producers. He sees the recent gold rally as a buy signal sparked by Japan's move to use the Fed's FIMA repo facility, which he reads as a return to monetary easing. Gold rose to $4,255 an ounce, gaining 4.38%, while silver hit $62.05. Grummes expects gold to reach $4,500 this summer and later $4,800-$4,900, with silver aiming for $70. Still, he does not foresee a new all-time high this year, despite the current record of $5,589.38 set on January 28. Grummes acquired shares in Silver Tiger Metals and First Mining Gold, averaging into positions between $4,000 and $4,400. He also views platinum as attractive below $2,000 and notes a shift in physical market activity toward Hong Kong and Shanghai.