Gains were seen across the board for precious metals this week. Gold prices rose 0.85% in the last 7 days from $1,764/oz last Wednesday to $1,779/oz today. The yellow metal experienced lows of $1,756 and highs of $1,798 nearing the $1,800 level. Silver too rose this in the last week gaining 0.62% from $26.23/oz to $26.40/oz at the time of writing. The white metal rose past the $27 line for the first time since February hitting a 2 month high of $27.19/oz on Tuesday. Prices for Platinum rose throughout the past week showing a 2.3% gain from $1,213/oz to $1,241/oz and hit a 2 month high of $1,271/oz. Palladium for the 4th consecutive week continued its constant rise and has been breaking all-time highs for the last fortnight. Currently priced at $3,026/oz the metal rose 1.17% from $2,991/oz demonstrating slower growth than previous weeks. Rhodium prices rose the most this week benefiting from a 3.14% gain in 7 days. Prices for the metal reached $29,500/oz from $28,600/oz.
As of late, the sentiment around Gold has been very mixed and a clear direction cannot be seen. There are both very strong push and pull factors that are teeter-tottering the prices. The decreasing US Dollar strength and US Treasury yields have been putting the odds in Gold’s favor. For the entire month of April, the U.S. Dollar Index (DXY) has steadily decreased from 93.23 to 90.61. Despite these push factors, Gold has lacked the upward momentum it needs to break through the $1,800 psychological level. This is likely due to optimism concerning the economic recovery and lifting of restrictions in countries like the US and the UK. Furthermore, John Williams, the President of the New York Federal Reserve believes that “GDP growth this year [is] to be the fastest in decades. Specifically, [he] see[s] inflation-adjusted, or real, GDP increasing around 7% this year”. This vast optimism is making Gold less attractive to investors.
Gold Prices (3 MONTHS)
Source: Tradingview; Gold Futures 3 months COMEX
Silver dipped during the week following Federal Reserve Chair Janet Yellen’s comments where she stated the need for interest rates to rise. These comments contradict Fed Chairman Jerome Powell’s promise to not increase interest rates any time soon. Following panic, Yellen retrieved her comments. Despite retrieving her comments, the strategy seemed logical to many. The US has run to stimulus packages and spending money to make money but it might cause an overheating economy and end in rapid inflation.
Once again Palladium hits new all time highs. Although not a surprise following the massive cuts in supply caused by the closing due to floods of the two mines belonging to the largest producer of palladium in the world in Russia. The slowing growth might be a sign that it is nearing its peak though. Previous weeks recorded higher and faster growth. Despite this, the demand still currently outweighs the supply. Palladium is essential in reducing emissions and with restrictions not going anywhere and no alternative in sight, it is very possible Palladium will continue to break through all time highs.
