Gold prices this week were volatile following news that the US might default on its repayments for the first time. Ultimately, the yellow metal is up just 0.68% as it sees its price increase from Monday’s market open price of $1,750/oz to $1,762/oz at the time of writing. This week, the precious metal experienced a high of $1,764/oz and a low of $1,722/oz. Gold prices experienced their highs and lows in the span of 3 hours this week as the precious metal jumps from its support level of around $1,720/oz to its weekly peak.
Gold Price (5 days)
Source: Tradingview; COMEX
Silver experienced similar price movements to gold this week as it dips to its lows midweek and recovers towards the end of the week. Since Monday’s market open price of $22.44/oz, the metal has gained just 0.49% to $22.55/oz. This week, the metal experienced a high of $22.82/oz and a low of $21.43/oz. This is the lowest price has experienced since the metal’s massive boom during 2020’s summer, over 14 months ago.
Silver Price (2 years)
Source: Tradingview; COMEX
Platinum prices are down due to a consistent downward trend that deluged from last week. Midweek, the trend changed upwards but the metal remains down slightly. Since Monday, the platinum prices has lost -0.61% of its value as it sees its price drop from $983/oz to $977/oz at the time of writing. This week, the metal experienced a high of $999/oz, but dropped after it failed to break through the $1,000/oz resistance level. The low this week was $943/oz.
Palladium saw its prices drop from $1,949 to $1,899/oz as it records a -2.56% drop in its price. This week, the metal experienced a high of $1,976/oz and a low of $1,829/oz. This is the lowest price the metal has seen in 15 months. On a 3 month basis, the metal is down a massive -31.39%.
Rhodium prices this week continue their 21st consecutive week of posting negative price movements. This week, the metal sees its price drop by -7.01% from $13,550/oz to $12,600/oz. On a 3 month basis, rhodium prices are down a total of -36.52% and down -52.63% on a 6-month timeline.
US Treasury yields this week shot up after news that the US might default for the first time was announced by Janet Yellen, the US secretary of the Treasury. As a consequence, the US Dollar index also gained much strength this week and caused disruptions in both the stock market and the commodities.
The dollar-denominated precious metals suffered this week as investors are pulling their money from higher return investments into bonds thanks to new low prices. Chances of a default are possible although some analysts believe that the US Congress will raise the debt ceiling to prevent that from happening.
Following this, the US Fed will likely start tapering its pandemic era stimulus very soon as inflation starts to reach sustained high levels and the US debt continues to pile on.