While we have left our Gold price forecast unchanged, we are revising our forecasts for Silver, Platinum, and Palladium upward, Commerzbank's commodity analyst Carsten Fritsch notes.

Silver and Platinum are likely to follow Gold

"We expect the price of Silver to reach $39 per troy ounce by the end of the year (previously $37), the price of Platinum to reach $1,350 per troy ounce (previously $1,250) and the price of Palladium to reach $1,200 ($1,100)."

"We therefore consider the majority of the recent price increase for the three precious metals to be sustainable, as it has reduced the previously significant undervaluation relative to Gold. The Gold/Silver ratio stands at 86, only slightly above its long-term average. The same can be said about the price ratio between Gold and Platinum."

"From now on, Silver and Platinum prices are likely to move largely in line with the price of Gold. Palladium prices are likely to perform somewhat weaker due to less favourable fundamentals."