Live Metal Prices / oz
Gold: 1969.33 USD
Silver: 24.09 USD
Platinum: 999.50 USD
Palladium: 1455.50 USD
Rhodium: 7500.01 USD

Precious Metals Update - February 2023

The US economy defied expectations at the start of 2023, although it did exhibit a lukewarm slowdown. This slight slowdown was preferred by the Federal Reserve because it will help control inflation without strangling growth. The GDP grew at a rate of 2.9%, which was slightly lower than the 3.2% growth at the end of last year. Many reports indicate a resilient economy in the coming months. The United States is introducing a tighter monetary policy in order to restrain inflation. However, the thing that needs to be noted is that the economy is still not out of the woods yet.  


In January, gold reached a high of $1,949.70 an ounce. Currently the metal is trading just below $1,800 an ounce. The pullback in the gold price was caused by better than expected US GDP rates in the last quarter of 2022. It should be mentioned that a better expectations of the US economy could weaken the gold price. Investors use gold as a hedging tool against impending economic upheaval. A stable and strong US economy is likely to move some investors away from gold. In fact, it was the appeal of gold as a hedging toole that caused its 5.7% increase in 2022. Year on year, the price of gold spiked from $1,811 to $1,915. While gold is expected to go soft over the ensuing weeks, this can cause opportunities for investors to buy gold bars and coins. The softening of gold is bound to attract many speculative investors.


Currently, silver is trading at just over $23.00 per ounce. This is higher than last month’s average price of $21.02 an ounce. Silver has shown strength in the current climate. It has crossed the past year’s high of 22.53. In fact, the metal's price has spiked almost 11% in the last month, and 3.5% over the last year. However, its important to remember that silver is more volatile than gold. Institutional investors are expected to increase investing in silver in the coming weeks. This is because of the high yields expected from silver. Support for silver has a lot to do with fears of burgeoning inflation. The Russia-Ukraine war has further stoked the fears of a possible European recession. The fantastic news is that the demand for silver in India has almost doubled, which is impacting the price worldwide. 


Platinum was vulnerable to supply-side challenges llast year. Experts believe that these supply-side challenges will not be mitigated in 2023. The production disruptions that erupted in South Africa did choke the supply of platinum. Furthermore, the rampant power shortage in the country has taken a toll on platinum mining. As the demand from the automotive sector rose by 25 percent, platinum showed growth Yet, supply of the metal is further expected to fall if Russian suppliers fail to obtain equipment that is needed from the West. Palladium showed a potent spike in 2022. The price of palladium rose by 31% to stand at $2,490. The prices are expected to surge further with a shortage of supply.