Gold prices remain confidently above the $1,800 price tag. The prices for the metal this week jumped to as high as $1,843/oz, mimicking prices seen in mid-February. Overall, the yellow bullion is up 0.38% from $1,821/oz last Friday to $1,828/oz at the time of writing.
After climbing 16.9% since the start of April 2021, Silver prices this week made losses. The white metal’s price decreased from $27.58/oz to $27.05/oz demonstrating a weekly loss of -1.90%. Silver attempted to pass the $28 line but failed to do so on 3 occasions this week, where its highest price was $27.96/oz.
Platinum made some substantial losses this week dropping -3.26% in the last 7 days. Prices for the metal went from $1,257/oz last Friday to $1,1216/oz at the time of writing. Platinum prices dipped to as low as $1,201/oz almost going below the $1,200 resistance on multiple occasions.
Palladium too made losses this week amounting to -1.88% from $2,965/oz to $2,909/oz. The metal skyrocketed in the month of April breaking through countless all-time highs and recorded a 14.4% increase for the month.
Rhodium had losses of -2.40% this week dropping from an initial price of $29,100/oz 7 days ago to $28,400/oz today. The metal experienced lows of $27,700/oz, below its $28,000 resistance.
Gold has made gains for the past month thanks to a weakening US Dollar and lower US Treasury yield rates. Since the start of April, the US Dollar index (DXY) has demonstrated a -2.73% loss from 93.30 to 90.75 at the time of writing. This week, the DXY has shown a slight recovery from 90.19 to 90.75 which could be cause for the slowdown in upward momentum of Gold’s value. Furthermore, the US Nonfarm payrolls were released recently and came out to be much less of what was anticipated. The environment right now being given by the US government remains one of hands-off monetary policy and strong expansionary fiscal policy which, if not well managed, can lead to inflation.
Gold Prices (1 Year)
Source: Tradingview; Gold Futures COMEX
The gains made by Silver and Palladium as of late has pulled another metal into leapfrog momentum, Copper. As industrial demand regains its strength, industrial metals have been benefiting tremendously with prices soaring. In the last year for example, Silver prices have increased 74% while the price for its competitor Gold has only increased 6.4%. Copper has increased a whopping 118% and broke through its all-time high which was last broken in 2011. Apart from having financial value, Silver is seen by many bullish precious metal investors as the ideal safe haven for the coming years. The green revolution needs Silver for its production and the rapid voluntary and forceful move (through green requirements and regulation) towards a more sustainable planet will only prove beneficial for the white metal.
It is difficult to predict where the precious market will go as the link between uncertainty and precious metals has become foggy. Different regions of the world are at vastly different stages of their COVID-19 situation making it impossible to generalize the market.
