Following its strong gains made in the last 3 weeks, prices for Gold dipped slightly this week. The yellow metal is currently valued at $1,771/oz, down 0.56% from 7 days ago when it was priced at $1,781/oz. Silver prices gained 0.48% percent from $25.93/oz last week to $26.06 today. Prices for the white metal experienced highs of $26.71/oz near the $26.75 resistance and lows of $25.88/oz. Platinum prices enjoyed a healthy gain of 2.17% in the last 7 days going from $1,195/oz to $1,221/oz today. It experienced a high of $1,255/oz, its highest price since February. Palladium continuously hit all-time highs this week and is currently at an all-time high of $2,969/oz, up 2.09% from 7 days ago when it was priced at $2,908/oz. On the other hand, Rhodium prices dropped from $29,000/oz to $28,600/oz this week representing a 1.37% loss.
Following its strong start to April, the gold price soared 7% in the last few weeks bringing it to its highest level since the end of February. The gold price has now failed to continue the upward momentum it had to confidently break past the $1,780 price tag. The lack of fundamental drivers paired with rising US Treasury bonds and the strengthening US dollar have made it hard for bullish investors to take control. The US Treasury 10-year yield is currently up 1%.
Gold Prices (3 Months)
Source: Tradingview; Gold Prices COMEX 3 months
Although following very similar trends to Gold since the start of April, Silver has managed to make small gains this week. This trend is likely to continue as demand for Silver is expected to rise to 1.03 billion ounces this year, a 15% increase. Still, Silver is lacking the bullish momentum it needs due to the rising US Treasury yields and US dollar strength. Prices for both Silver & Gold will be heavily influenced by the US Federal Reserve’s decision on policy changes as it starts to release information on when the extraordinary hands-off monetary policy approach will start to be lifted and stricter measures will be imposed.
Surges in Palladium’s prices since the start of April can largely be attributed to supply concerns. In late February, 2 of Russia’s Nornickel mines flooded and ceased operations. Being the world’s largest producer of Palladium, it means that world supply will be drastically reduced. Since the cease of operations, the prices for Palladium, have shot up nearly 24%.
India’s current COVID-19 situation has reached disastrous levels and it is of major concern to bullish investors in the precious metals market. The levels at which cases are being detected daily is cause for global concern and hence international aid is flowing into the country. This record-breaking second wave in India has slowed the economic optimism for the international economic recovery and, for the precious metal market, it has put a dent in demand as India is one of its largest clients.