Weekly Market Update - May 19, 2017

Precious metals have experienced volatility this week, with gold price increasing 2.4% between Monday and Wednesday before seeing a correction, with silver following its lead. The upwards movement in gold was in large part determined by continued US political instability and certain erosion of expectations of the Fed hike in June - as doubts about fiscal stimulus and tax reform grow. The gold price saw a certain downward correction on Thursday the 18th of May on the favourable US jobless claims data.

As global silver mine output declined in 2016 the upward pricing pressures remain intact in the near term. The bright spot in industrial demand remains within solar power related photovoltaic cells.

Palladium hasn't benefitted from the promises of increased spending by China, that said it still remains a stronger investment. This year may be the year palladium becomes more expensive than platinum for the first year in 16 years. This is primarily down to palladium market experiencing a rising deficit in contrast to platinum witnessing its first surplus in six years. This case is exacerbated as the platinum market is facing softer jewellery and the automotive demand two of its major drivers. It is also believed that the Chinese production of platinum trinkets will contract in the near future exerting downward pressure on pricing.

Gold spot price was traded at $1252.10 per oz this morning and silver stood at $16.74 per oz. Platinum was at $937 per oz and palladium at $763 per oz.

Gold Price