Gold has gone through significant declines since the end of February. The prices of the yellow metal dipped below several technical supports until hitting the $1,675/oz price and started a slow recovery upwards. Currently, the price for gold is $1,731/oz after hitting a high of $1,749. Silver prices fell from highs of $26.4/oz to prices nearing the $25 line on Tuesday evening. Currently, the price of silver sits at $25.21/oz demonstrating a 2.10% loss in the last 7 days. Platinum prices started to fall again towards the $1,170 resistance. Platinum prices sit at $1,172/oz at the time of writing, a 3.69% decrease in the last week. Palladium prices dropped 2.29% this week after experiencing a yearly high of $2,706/oz following the global supply cut caused by Russian mines’ floods. The price for palladium now is $2,644/oz. Rhodium had a massive week demonstrating a gain of 10.98% in the last 7 days. Rhodium’s prices even hit an all-time high of $29,800/oz nearly touching the $30,000 milestone. At the time of writing, Rhodium prices sit at $28,900/oz.
Gold continues to remain volatile as 2021’s economic calendar remains heavy with many events that could cause the yellow bullion to swing either way. The US-Dollar continues to gain strength as precious metal sellers grow in numbers. Some European countries like Germany, Netherlands and France have extended and implemented COVID-19 lockdowns in many cities arising uncertainty which should give Gold a good support. Despite this, the larger US market faces an opposite situation as states start to remove restrictions. Joe Biden’s vaccine optimism paired with Treasury Secretary Janet Yellen’s push back of tax increase have been unsuccessful at bringing back gold buyers.
GOLD PRICES (1 MONTH)
Source: Tradingview; Gold Futures 30 – COMEX
Silver’s drop in the low $25 range this week has recalled buyers and moved Silver into a slightly more bullish position. The area at which Silver sits right now has large amounts of supports to the 200-exponential moving average (EMA) which is at $24.7. It also seems that the demand is starting to outweigh the supply as Silver now becomes rarer than gold.
This week’s metal was Rhodium after it demonstrated massive gains. Despite this increase, it might look bad for the future of the auto-catalyst’s solution metal. Car manufacturers are looking for ways to move away from Rhodium as its prices continue to rise tremendously. Rhodium remains the only metal that reduces NO2 emissions, a target for new emission regulations. R&D efforts have been happening on this matter for decades and have rendered no solution yet. Until then, it is unlikely a crash in Rhodium will happen as price elasticity remains relatively inelastic until an alternative is found or until electric vehicles/hydrogen vehicles start being widely used. On top of that, some peculiar issues arose following the price hike. Theft of vehicle catalytic converts have risen just as fast as its price. Police have documented saying the number of thefts have risen exponentially since 2019.