This week, Gold has continued its rise from previous weeks. The metal records a 2.23% increase in price from its price last week of $1,789/oz to $1,829/oz at the time of writing. These prices are the highest the yellow bullion has seen since Mid-February.
Silver too recorded a positive week making similar gains to its yellow counterpart. The white metal gained 2.85% from $26.68/oz last week to $27.45/oz today. The metal experienced highs of $27.94/oz nearing the $28 resistance level.
Platinum on the other hand, has made losses this week amounting to a -0.96% decrease in price from $1,243/oz 7 days ago to $1,231/oz today. The metal experienced a high of as much as $1,280, its highest price since late-February.
Palladium made slight losses this week after coming off its all-time highs. The metal is down -0.37% from a price of $2,975/oz last Wednesday to $2,964/oz today.
Rhodium made significant losses this week dropping as much as -6.10%. Last Wednesday, the NO2 reducing metal was priced at $29,500/oz and is currently priced at a lower $27,700/oz. This is Rhodium’s lowest price in 4 weeks.
Gold broke through resistance levels and is currently priced at a 3-month high. Gold extends its growth thanks to the weakening US Dollar which has been losing value since the start of April. However, this week the US nonfarm payrolls (statistic that shows the number of people currently in employment) came out much lower than what was expected. This caused the DXY (US-Dollar index) to drop to a 10-week low. Fundamentally, statistics like this increase the chances of fiscal spending by governments which lead to higher chances of inflation and in turn, high demand for Gold as a safe haven.
Gold Prices vs DXY (US-Dollar index) – 12 MONTHS
Silver made similar gains to Gold and has higher chances of a long-term uptrend thanks to its fundamental strengths that puts it in a very strong position. As of late, the metal has been flooded with bulls believing that prices will sky-rocket like they did during the 1971-1980 period when Silver returned a 37x increase. The facts show that global debt has increased by 8.54% because of the pandemic and all of this is being cushioned by central banks. To boost economic activity, interest rates have been at their absolute lowest which has made borrowing cheaper than ever. These are risky environments that can cause a collapse. During risky periods, investors turn to precious metals like Gold or Silver as safe havens. On top of having similar financial fundamentals as Gold, Silver derives 50% of its demand from industrial purposes giving it physical and theoretical value. Currently, supply is expected to rise 8% in 2021 while demand for industrial use of silver is expected to rise 15% (Silver Institute).
In terms of short-term, Silver also holds an advantage. It is currently holding a 6-week uptrend where its next upside objective is at a resistance of $28.475 whereas for a downside objective is all the way down at $25.745. It is likely Silver will continue to rise on the short term and long term.
