The gold price continued its rise this week and is currently priced at its highest level of the last 16 weeks, back in January 2021. This week, the yellow bullion gained 1.63% from a price of $1,836/oz 7 days ago to $1,866/oz at the time of writing. The metal experienced lows of $1,810 and highs of $1,875.
Silver prices grew by 1.33% this week, finally passing the $28 level for the first time in 3 months, and silver is currently priced at a 15 week high. The white metal is currently priced at $28.07/oz up from $27.70/oz 7 days ago. Silver experienced prices as high as $28.87 this week.
Platinum lost out this week dropping from $1,242/oz to $1,219/oz at the time of writing, demonstrating a -1.85% loss. Prices for the metal nearly dipped below the $1,200 level on two occasions but managed to remain above.
Palladium made gains from $2,908/oz to $2,945/oz in the last week. This jump represents a 1.27% gain in the last 7 days.
Rhodium gained 1.80% this week increasing its prices from $27,700/oz to $28,200.
Gold has been gaining strong upward momentum in the last few weeks and it is reciprocated with hedge fund managers following suit. US Government figures showed last week that these managers have upped their long-term positions in futures (including Gold futures) by 12% compared to the week prior. This is the highest since June 2020. The US Dollar continues to retreat, and the US Dollar Index (DXY) has dipped below 90 for the first time since January. Furthermore, the US Federal Reserve has promised to keep interest rates low and has shown signs of inflation rising. These are all fundamental environments for Gold to thrive in.
Gold Prices (6 Months)
Source: Tradingview; Gold Futures COMEX
Silver has a near-term technical advantage to continue its upward momentum in the coming weeks. Currently, there is a 7-week uptrend that can be seen. The next price target for Silver bullish investors is the February high of $30.01/oz while its support levels currently stand at $26.78/oz, the lowest price last week. Again, Silver has been receiving a large influx of new bullish investors who see its potential. Silver's potential growth is based on technical and financial market factors, but also the fact that its physical value is rapidly increasing in demand too. Many investors have been pinning Silver’s future success to Copper’s current success. The Copper price has exploded recently and has broken its all-time high which was last set in 2011. The same can be said for Iron Ore too which broke the $200/ton price tag for the first time in history. Industrial metals are in high demand currently and are experiencing falling supply that is unable to meet the increasing levels of demand. Silver, which is a key material in solar energy panels and other renewable energy and electric vehicles, will benefit from the current industrial trend referred to as the green revolution. Hence, it is likely Silver is soon going to reap the benefits.