Market Update 7 July 2021
Gold finally moves past the $1,800 level this week as it sees its biggest rise since the start of June. The yellow bullion recorded an increase in price from $1,768/oz last Wednesday to $1,801/oz at the time of writing, while demonstrating a 1.86% rise. The metal experienced a high of $1,814/oz and a low of $1,766/oz.
Silver prices fluctuated with high volatility this week and ultimately ended 0.26% higher in the last 7 days, from $26.21/oz to $26.28/oz. The white metal made gains amounting to 2.03% during the July 2nd trading session and dropped a further -2.81% during the July 6th trading session.
Silver Price (1 WEEK)
Source: Tradingview; COMEX
Platinum prices were up this week as its price jumped from $1,066/oz 7 days ago to $1,088/oz at the time of writing. The industrial metal is up 2.06% on a week-to-week basis but remains -12.75% down on a 3-month basis. This week, platinum experienced a high of $1,116/oz and a low of $1,060/oz.
Palladium prices are up a slight 0.65% from $2,777/oz to $2,795/oz. The metal suffered a big loss during the July 6th trading session as it lost -3.33% of its value from $2,878/oz to $2,782/oz. Palladium prices have consistently risen since mid-June and it now finds itself better positioned than other precious metals. On a monthly basis, palladium prices are down only -1.61%.
Rhodium continues to drop further as it records another -2.01% loss this week from its price of $19,850/oz last Wednesday to $19,450/oz today. The metal is now down -32.93% on a 3-month basis and currently stands at a price lowest in almost 23 weeks.
Gold prices were trading slightly above the psychological resistance of $1,800 this week despite the US Dollar Index (DXY) continuing its gains. This was largely thanks to the losses incurred by the US Treasury 10 Year yields as rates dropped a substantial -6.66% from 1.455% to 1.358% today, the lowest rate in 22 weeks.
Gold prices and very likely Silver prices too will be subject to much volatility as investors await the minutes from the Federal Open Market Committee (FOMC) which will update the market on policies. US NonFarm payrolls which experienced an uptick in unemployment and other national economic indicators from countries all over the world have shown that economic recovery is yet to be robust enough for central banks to stop their easy, dovish stance towards monetary policy. The US Fed has promised to keep its interest rates near 0 till the end of 2023, while Australia has just left its monetary policy unchanged and said it won’t raise its interest rates till 2024.
European economic data showed that sales were up from April to May by 5.6% and up 9.0% year on year as the zone beats its market expectations.
High palladium and rhodium prices in the last few months have caused many automakers like Mercedes, Suzuki, Hyundai and Tata to plan price hikes to combat high raw material production costs. During the first quarter of 2021, Palladium and Rhodium prices were seen smashing through all-time high prices.