Gold prices could keep climbing — but analysts expect silver to steal the show before long

A record-breaking rally for gold may yet continue, particularly as investors position for interest rate cuts — but analysts say silver appears well placed to outshine the yellow metal in the second half of the year.

Spot gold prices on Monday edged higher to $2,178 per ounce, after settling at their highest since 1979 on Thursday last week.

Spot silver prices, meanwhile, were last seen up 0.2% at $24.36 per ounce at 6:24 a.m. London time (1:24 a.m. ET). The contract, which rose over 5% last week, on Thursday settled at its highest level since late December.

Precious metal prices have pushed higher in recent weeks amid growing expectations of U.S. interest rate cuts. Federal Reserve Chair Jerome Powell on Thursday said that inflation is "not far" from where it needs to be for the central bank to start cutting rates.

Gold, which is typically considered a "safe haven" asset at times of financial uncertainty, has rallied despite high interest rates and a relatively strong U.S. dollar.

"If you look at gold's correlations, what you can see is that actually despite the narrative of it being a defensive asset, really it oscillates between the two. It can sometimes perform in line with risk and sometimes against risk," Marcus Garvey, head of commodities strategy at Macquarie, told CNBC's "Street Signs Europe" on Friday.

"What you need to then get back to is what is the underlying causation of those moves and why is gold reacting in one way or the other, and I think here, really the thing that is setting up gold very well … is expectations of rate cuts. That's clearly risk positive."

Garvey said near-term U.S. jobs and inflation data could determine whether gold prices, which he described as "incredibly resilient" so far, push as high as