Market Update 23 June 2021

There have been recent massive losses in the precious metals market as metals lose out and hit monthly and quarterly low prices.

Gold prices continue their downtrend this week by recording a substantial fall from $1,867/oz last Wednesday to below $1,800 level at $1,782/oz. Overall, the metal is down -4.55% this week. The metal experienced a high of $1,869/oz and a low of $1,761/oz, the lowest price in 8 weeks. Over the last month, the yellow bullion is down a total of -5.31%.

Silver once again follows the same price fluctuations as gold but this time falls further. The white metal lost a total of -7.25% in the last 7 days, falling from $28.01/oz to $25.98/oz. Silver started off on its weekly high and experienced a low of $25.59/oz, the lowest price in nearly 10 weeks. Over the last month, the white bullion is down a total of -5.95%.

Platinum too lost out this week. The industrial metal started off last Wednesday at a price of $1,166/oz and, at the time of writing, is priced at $1,074/oz demonstrating a hefty loss of -7.89%. Platinum prices started off on a high and experienced a low of $1,021/oz, the lowest price since last year, 25 weeks ago. Over the last month, the metal is down a total of -8.44%.

Palladium is down -6.66% since last Wednesday as it records a price drop from $2,777/oz 7 days ago to $2,592/oz today. The metal experienced a high of $2,837/oz and a low of $2,452/oz, the lowest price in 14 weeks. Over the last month, the metal is down -6.79%.

Rhodium is the biggest loser this week as it records a double-digit loss of -11.96% as its value drops from $23,000/oz to $20,250/oz, the lowest price in 20 weeks. Over the last month, the metal is down a total of -20.58%.

The precious metals market was on a downfall as the US-Dollar Index (DXY) and the US Treasury bond yields increased towards the end of last week following the statements released during the US FOMC (Federal Open Market Committee).

The DXY recorded a massive jump from 90.54 to 92.22 as it demonstrates a 1.86% jump. This is the highest level the DXY has been in the last 9 weeks.

The yields for the US Treasury 10 year bond jumped from 1.498% to 1.580% as it records a massive 5.47% jump.

The results of the FOMC meeting caused a sell-off in the precious metals market. The statements released reaffirmed the dovish stance that would be taken on monetary policy. The Fed continued to keep its interest rates to a near-zero rate of 0.25% and maintain its purchase rate of US$120 billion per month of bonds.

Gold Price (1 YEAR)

Source: Tradingview; COMEX