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Gold is down -3.58% this week as it sees its price decrease from $1,814/oz last Wednesday to $1,749/oz today. The yellow bullion opened the week on a low of $1,697/oz, its first time dipping below the $1,700 level in 19 weeks. The metal has since gained 3.06% to minimize its loss.
Gold Price (1 year)
Source: Tradingview; COMEX
Silver followed a very similar trading pattern to its gold counterpart although did not benefit from as good a recovery. The white metal is down -8.30% from $25.60/oz to $23.48/oz. Silver was down further at the week’s open where it nearly dipped below the $23 level by experiencing a low of $23.09/oz, the metals lowest price in over 8 months, when it last dipped below $23 in December 2020.
Platinum dips below the $1,000 level for the first time in 2021. This week, the industrial metal is down -3.07% from $1,043/oz 7 days ago to $1,011/oz at the time of writing. Platinum closed last Friday below the $1,000 level and dropped as low as $954/oz. This was its lowest price in over 8 months as the metal continues its consistent downtrend which started in May. Since its peak in mid-May, platinum is down nearly -21%.
Palladium suffered the least of the lot as it drops just -0.94% in value. The prices for the metal decreased from $2,646/oz last Wednesday to $2,621/oz today. The metal remains a substantial -12.75% off its all-time high of $3,004/oz and the start of May.
Rhodium is down a further -4.48% by seeing a drop in value from $17,850/oz to $17,050/oz. Since the start of May, the metal is down a massive -42.20%. The metal has been consistently decreasing every week since mid-June where it’s been dropping about -3% to -5% per week.
The US CPI data released was on par with current expectations and decreased to 0.5% in July, down from the 0.9% increase experienced in June. Consequently, the US Dollar index (DXY) increased from 92.24 to 93.06 which saw investors withdraw positions in order to take profit. Gold, a dollar denominated commodity, profited from this data.
Despite a slowdown in inflation as shown by the CPI, investors continue to believe that the US Fed will diminish its dovish stance towards monetary policy sooner than expected, as was seen by the uptick in the US Treasury 10 year yield. Bullish precious metal investors believe it would be wise to wait for a consistent follow-through buying of gold to confirm that the commodity has reached its trough before placing a position.
The COVID-19 situation seems to worsen, yet economies are opening up leading to a mixed result. The Delta variant ravaging the USA, Europe and many other countries, has seen some investors turn to gold or silver as safe-havens, which precious metals are known for.