As the end of Q1 approaches, the prices in the precious metal industry continue to fluctuate. This week, almost all precious metal prices have dipped. Gold found itself below the $1,700/oz price tag at the end of last week. This is the first time Gold has tested waters below $1,700 since June 2020. Since then, Gold has been climbing upwards from its low of $1,677 on Monday to $1,716. Silver has seen ups and downs in the last 7 days but ultimately ends 3.42% lower than last week. The white metal currently sits at $25.85/oz down from its price of $27 at the start of the month. Similarly, Platinum prices fluctuated since last week briefly falling to $1,110/oz over the weekend. Today, Platinum sits at a price of $1,164. 3.72% lower compared to 7 days ago. Palladium has seen a slight, but consistent downtrend in the last week. Dropping from $2,398/oz to $2,293.5. Continuing its downward trend since the start of the month. Rhodium takes a break from its immensely bullish run to drop from its all-time high of $28,900/oz to $27,600. The metal’s first price dip in a few weeks.
Jerome Powell, Chair of the American Federal Reserve, dismissed concerns over rising inflation pressures and the remarkably high bond yields on Thursday. Since those comments were made, the yields for 10-Year Treasury spiked even higher which added to the gold prices dipping its feet below the $1,700/oz support. Gold is heavily affected by movements in the equity and bond market because the scale is so different. Gold’s private investment market is $2.8 trillion while there is an $88 trillion equity market and $108 trillion bond market. Powell did have some good news for the gold market though as he said there was no rush in raising interest rates, this provides as some support for the yellow metal’s prices.
GOLD PRICE (3 MONTHS)
image by Tradingview; Gold Futures COMEX @2021
A slight pullback was seen in precious metals like Silver, Platinum, Palladium and Rhodium. This has not been attributed to singular events but overall sentiment. These 4 metals have seen some extremely healthy bullish trends in the last few months. The re-entry into life before COVID-19 has made people optimistic but also weary. A slight backtrack in demand for these metals is inevitable. The hype around the reopening of the world with vaccine news and restrictions being lifted has slightly died off, perhaps causing a dip in price.
As U.S. Vice President Kamala Harris proceeded to be the tie-breaker vote for the $1.9 trillion stimulus last week in the Senate. The bill now passes to the House where it plans to pass the COVID relief on Wednesday. With the excitement steaming around all recent news, Gold has started to lose its godly status as the COVID-19 safe haven, and, consequently, the prices have been falling. Although, many believe that with the increased debt and impact inflation, there is an inevitable inflation rise that will come around above the 2% target. At that time, the bullion market will see a healthy rise.
