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Gold prices this week suffered a slight decline from $1,785/oz last Friday to $1,768/oz today representing a loss of 0.95%. The yellow metal experienced highs of $1,794/oz and lows of $1,756/oz on Thursday. Silver prices were up and down this week but ultimately, the white metal ends the week just slightly higher. Priced at $26.18/oz last week, Silver demonstrated a 0.32% gain to $26.27/oz experiencing highs of up to $26.56/oz and lows below the $26 line at $25.81/oz. Platinum experienced highs of $1,259/oz and lows of $1,184/oz. It ends the week at the same price it started; $1,220/oz. Palladium once again smashed through all time highs this week and has done so for the entire month of April. It finds itself at a new all time high for the first time above the $3,000 price tag. Palladium prices started the week at $2,886/oz and ended the week a huge 4.54% higher at $3,017/oz. Rhodium recovered from its slight dip last week and ends this week 0.69% more expensive at $29,000/oz compared to $28,800/oz last Friday.
Gold suffered losses this week largely due to the release of the US annualized GDP. The results beat estimates marking down a 6.4% growth in Q1 of 2021 despite weekly unemployment claims hitting its lowest since the start of COVID-19 with 553,000 Americans being claimed as jobless. Furthermore, the US dollar continues to gain strength, slowly but surely, as well as US treasury yields which continue to rise. These factors have made it difficult for gold prices to find a constant upward momentum despite obvious concerns over the economy’s global stability.
Gold Prices (3 MONTHS)
Source: Tradingview; Gold Futures COMEX
Silver continues to slowly gain while Gold loses. Despite both being affected by similar market factors, Silver seems to always come out on top at the end of the week. Fundamental factors are what is pushing the metal’s prices higher. The proportion of global stimulus being put into renewable energy and infrastructure projects, mainly the massive US$2 trillion infrastructure package announce by President Biden, has increased the demand for gold’s white counterpart. Many believe there is a tightening supply of metals like Silver which are indicating the start of a supercycle.
Palladium continued its April rally breaking all time highs every week. Its massive gains have pushed Copper prices as well, which is currently priced at a decade high price of $4.5 per pound.
The US central bank promised to keep interest rates at lower levels while delivering on more stimulus. This has been a driver for production metals like Palladium, Copper, Silver and Platinum which are all used for industrial purposes. Gold on the other hand, which is not used for such purposes, is having an inverse reaction to it. Low interest rates are promising for steady economic growth in the coming months. Gold, known to be a safe haven during tough economic times, is hence not being bought as much because of this optimistic outlook for economic growth.