Gold prices end the week just where they started. The yellow bullion sees its price fluctuate widely throughout this trading week although only sees an increase amounting to 0.17%, or a price increase from $1,753/oz on Monday’s market open to $1,756/oz at the time of writing. This week, the safe haven metal experienced a high of $1,787/oz and a low of $1,738/oz, the lowest price for gold in over 6 weeks. On a 3 month basis, the precious metal is down just -1.18% thanks to its recovery early September.
Gold Price (1 year)
Source: Tradingview; COMEX
Silver sees its price briefly break through the $23.00/oz level and fall back to the lower $22.00/oz ranges quite quickly. Over the course of this trading week, the white metal has increased its value by 0.36% as its price jumps from $22.37/oz on Monday and $22.45/oz today. This week, silver experienced a high of $23.11/oz and a low of $22.07/oz, the lowest price the metal has seen in 14 months. On a 3 month basis, silver prices are down a substantial -13.47%.
Silver Price (1 year)
Source: Tradingview; COMEX
Platinum benefitted from a strong upward trend that started mid-week right after platinum prices dipped below the $900/oz level for the first in 2021. This week, the industrial metal posts a great 5.15% 5 day gain as it sees its price increase from $932/oz on Monday to $980/oz at the time of writing. Platinum experienced a high of $1,009/oz and a low of $895/oz. On a 3 month basis, the metal is still down -9.68%.
Palladium prices dip back below the $2,000/oz level as the metal posts a -2.89% weekly loss as it sees its price drop from $2,007/oz on Monday to $1,949/oz today. This week, the metal experienced a high of $2,068/oz and a low of $1,832/oz, the lowest price in almost 15 months. On a 3 month basis, the metal is down a massive -25.35%.
Rhodium records its 21st consecutive weekly loss as it posts another -6.55% decrease in value from Monday’s market open price of $14,500/oz to today’s price of $13,550/oz. On a 3 month basis, the metal is down -33.08%.
Industrial metals, specifically Palladium, Platinum and Rhodium, which act as main ingredients in emission reduction systems for vehicle manufacturers are going to struggle in the coming months as automotive makers are shutting down their plants due to the semi-conductor global shortage. Toyota alone has announced it will cut down 40% of its production, and General Motors is shutting down 6 plants temporarily. As production of vehicles decreases, the demand for platinum group metals is being affected.
The US Fed along with the Bank of England have yet to officially announce early rate hikes and tapering of pandemic era stimulus, although investors believe it is inevitable. This poses a great challenge for any consistent upsides for Gold and Silver as they find support in the Chinese real estate giant Evergrande, but not enough to overweigh the fears of tapering.