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Gold continues to extend its growth this week as it records a healthy 2.07% gain seeing its prices rise from last Wednesday’s market open price of $1,831/oz to today’s price of $1,869/oz. In the last 7 days, the metal experienced a high of $1,879/oz, the highest recorded price in nearly 23 weeks. The low was seen at $1,824/oz. On a 3 month basis, the yellow bullion is up 4.53% thanks to a very strong October and November performance.
Gold Price (6 months)
Silver prices follow a similar trend while extending even further by returning a 3.32% gain since last Wednesday as its prices increase from $24.35/oz to $25.16/oz at the time of writing. This week, the white bullion experienced a high of $25.47/oz, the highest price seen in 15 weeks. The weekly low was at $24.18/oz. On a 3 month basis, silver prices are up 5.45%.
Platinum’s value increase just 0.75% this week as it sees its prices increase slightly from $1,062/oz 7 days ago to $1,070/oz today. This week, the high was seen at $1,112/oz, the highest recorded price in nearly 18 weeks. The metal’s value corrected itself quickly after that peak. The low this week was $1,055/oz.
Palladium benefits massively this week as it puts forward a substantial 8.15% gain. Since last Wednesday, the industrial metal’s price increased from $2,025/oz to $2,190/oz at the time of writing. This week, the metal’s high was $2,193/oz, the highest price seen in over 8 weeks. The weekly low was $2,007/oz.
Rhodium increases its value by 1.82% as it sees its prices rise from $11,000/oz to $11,200/oz. On a 6 month basis although, the metal is still down a massive -60.56%.
Recent US CPI data that showed October’s 6.2% increase in consumer goods YoY has continued to push money towards gold and other precious metals like silver as they are seen as inflation hedges.
The possibility of an early policy tightening by the US Fed has kept bullish investors from pouring more money into gold and the precious metals market. Currently, forward guidance of possible interest rate hikes by July 2022 has moved the markets with that market sentiment. This can be seen by the US treasury yields which have increased from 1.257% 3 months ago to 1.616% today. Increased Treasury yields pull cash out of gold’s non-yielding market and into the yield-paying treasuries. Furthermore, the increased US Yields have pushed the US Dollar into 16-month highs this month as the US Dollar Index (DXY) increases 2.80% in the last 3 months. An appreciating dollar acts as an obstacle for the dollar-denominated gold commodity.
Current fears of stagflation have many investors believe that the current pace of asset purchase tapering will slow to maintain steady economic growth. This could also mean that low interest rates could stay for longer than expected with interest rate hikes only coming later on.