Gold prices continue their rise into their highest levels in 19 weeks. Prices for the yellow bullion increased 2.01% since last Friday, making a move from $1,835/oz to $1,872/oz today. The metal experienced highs of $1,890/oz and started its week on a low.
Silver too continues its consistent rise since the end of March. This week, the white metal gained 1.61% from $27.31/oz to $27.75/oz at the time of writing. It is important to note that highs experienced during the week soared to as high as $28.86/oz, the highest since the start of February.
Platinum drops this week from $1,228/oz to $1,200 today. The industrial metal recorded a loss of -2.28%. This is also the first time since May the metal dropped below the $1,200 price tag where it dropped to as low as $1,187/oz.
Palladium dips again this week after soaring to all time high prices. The metal had a decrease in prices of -2.04% from $2,930/oz last week to $2,870 at the time of writing.
Rhodium followed suit by dropping -2.28% this week. The metal, used for reducing Nitrogen Oxide emissions in vehicles, dropped from $28,840/oz last Friday to $27,750/oz. This is the metal’s lowest price in 6 weeks.
The US Federal Reserve released a warning of a possible transitory rise in inflation in the coming months. Along with the weakening US Dollar Index which has now dropped to levels below 90, it has pushed Gold prices into higher territories, past the February high. The next target for Gold prices lies at the yearly high of $1,959. Amongst other things, the Relative Strength Index (RSI) has now been pushed into levels where it is considered overbought as the indicator shows it moving above 70. This, by consequence, is likely to increase gold prices much like we last saw in July 2020.
GOLD PRICE (6 MONTHS)
Source: Tradingview; Gold Futures COMEX
Platinum, a metal used in auto-catalysts to reduce carbon emissions in vehicle engines required by many government regulations, has had its prices rising as of recent times due to a supply deficit. This metal is primarily sourced from mines located in Russia and South Africa with some smaller operations in Canada and Zimbabwe. Demand for Platinum was affected by the pandemic. This resulted in a 7% (or 569,000 ounce) decrease in demand in the industrial, jewelry and automotive sectors. Despite this, prices rose because the supply dropped even further. A 20% drop in mining production was recorded along with a decrease of 10% in recycling systems. Overall, this caused a missing 1.4 million ounces, or 17%.
Palladium is likely to follow very similar trends to Platinum for its automotive uses are concurrent with Platinum’s. Palladium although, has had an even bigger shock to its supply which led it to break through countless all-time-highs last month. On top of the pandemic supply shock, two of the largest Palladium producing mines in Russia were shut down following a flooding.
