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Gold technical analysis shows that it is likely the yellow metal will continue its trend downwards. Gold prices are nearing the $1720/oz support as it failed to cross the $1742/44 region multiple times in the last few weeks. If it falls below, the bearish traders will take over as the prices will slip even lower before the next support at $1720/oz. Currently, the price for the yellow metal stands at $1726/oz down 0.6% since last week. Silver struggled this weak dropping below the $25 resistance touching a low of $24.50/oz and quickly recovering to $25.12/oz. Overall, the white metal is down 3.1% from $25.93 last week. Platinum prices dropped all week from $1,212/oz and ending the week at $1,163/oz showing a 4.04% loss. Palladium prices slightly dipped following their immense highs after the news of a supply cut due to water damage in Russian mines. Current prices for palladium stand at $2,663/oz, 0.7% lower than last week. Rhodium prices reached an all-time high of $29,800 this week nearing the $30,000 price tag. It closed the week at $27,300/oz.
The US-dollar is actively gaining strength which is causing gold, silver and other metal investors to sell. The future is looking uncertain for Gold. 2021 is the year of transition to the new-normal or pre-pandemic times and hence, comes a challenging economic calendar with a multitude of events that will affect the global economy and consequently Gold. The European market seems to still take some comfort in Gold as some countries like France and Germany have announced city-wide lockdowns to combat the spread of COVID-19. On the other hand, the US market is experiencing the opposite as state-wide restrictions are lifted and Joe Biden’s vaccination drive pushes forward with extreme pace. Furthermore, Janet Yellen put off a tax increase for now pushing Gold buyers further away.
Silver plunged past the $25 resistance all the way to the 200-day EMA before bouncing back above the $25 line. Analysts believe that If the price manages to break below the 200-day EMA, there is a strong probability that the white metal, which is now considered rarer than gold, will drop to the $22 level. Furthermore, dropping to this price range will likely cause a massive trend shift which can consequently, in extreme cases, can bring Silver all the way down to $12.
SILVER PRICE (7 DAYS)
Source: Tradingview; Silver Futures 30 - COMEX
One metal that is currently a hot topic of discussion is Rhodium and more specifically on how sustainable its current prices are. Rhodium is the sole metal able to reduce NO2 emissions in auto-catalysts in vehicles. Platinum and Palladium also help reduce emissions but are unable to tackle the NO2 emissions that make Rhodium a somewhat inelastic commodity unless an alternative can be found. The quick arrival of electric vehicles will also eliminate the abundant need for Rhodium. To this day, there is no alternative for Rhodium even though years of R&D have been put into finding one by car manufacturers.