Market Update 14 July 2021

Gold prices experienced a volatile week with prices constantly fluctuating above and below the critical $1,800 psychological line. Ultimately, the yellow bullion sees a 1.00% increase in its prices as it moves up from $1,795/oz last Wednesday to $1,813/oz today. This week, the precious metal experienced a high of $1,818/oz and a low of $1,792/oz. Gold is up a total of 3.12% this month as it slowly recovers from weeks of downtrend since the start of June.

Gold Futures (3 MONTHS)

Source: Tradingview; COMEX

Silver too underwent a volatile week of ups and downs but adversely closes down compared to its yellow counterpart. The white metal saw a slight dip from its last Wednesday price of $26.20/oz to $26.12/oz at the time of writing, demonstrating a -0.30% loss. The metal experienced a high of $26.53/oz and a low of $25.85/oz. Silver prices have yet to make any sort of significant recovery from its downtrend which started in June. The metal is up only 1.55% from the lowest price of $25.72/oz.

Platinum prices are up substantially this week as it sees its price increase from $1,084/oz 7 days ago to $1,108/oz today, posing a 2.21% increase. The metal experienced two jumps during the July 9th and 12th trading sessions which have put the metal in an uptrend. This week, platinum experienced a high of $1,123/oz, the highest price in 4 weeks, and a low of $1,063/oz. Prices for the metal have recovered 8.41% since the downtrend of early May but remains -13.30% down since.

Palladium, similarly, is up this week as it records an increase of 2.34% from a price of $2,774/oz to $2,839/oz today. This week, the metal experienced a high of $2,870/oz and started the week on a low of $2,771/oz. Palladium prices have recovered well since its downfall which started early May, where, in the space of a month and a half, shortly after passing the $3,000 level for the first time, the metal saw its value plunge -18.67%. Palladium prices have since recovered 15.78% and remain just -2.89% down.

Palladium Futures (3 MONTHS)

Source: Tradingview; NYMEX

Despite other industrial metals having increased prices this week, Rhodium prices continue to fall to lower lows. The metal is down an additional -4.11% from $19,450/oz to $18,650/oz. This is the lowest price for the metal in 27 weeks.

Anticipation of great Q2 results has pushed increases to record highs in the DOW J, NASDAQ and S&P 500 which reduced demand for safer investments like Gold and other precious metals.

The US CPI clocked in an 0.9% increase in June on its index and a 5.4% jump year on year, the largest jump since November 1991. This puts pressure on the Fed to re-evaluate its easy monetary policy of raising interest rates in 2023. Looking at US Federal Fund Futures, the markets are rating an 80% chance of at least 1 increase in interest rates by the end of 2022.

This increased inflation has caused an increase in the US Dollar and US Treasury Bond yields while it’s caused a slight dent in Gold prices.