Market Update, 9 June 2021
Gold prices dipped back below the $1,900 level this week. The yellow bullion that was priced at $1,901/oz 7 days ago fell -0.57% to $1,890/oz at the time of writing. The metal experienced highs of $1,911/oz and lows of $1,861/oz.
Silver followed a similar pattern to Gold’s movement this week. The white metal dropped -1.02% from its price of $27.95/oz last Wednesday to $27.66/oz today. Silver prices experienced highs of $28.34/oz and lows of $27.16/oz, its lowest price in 3 weeks.
As per most of the metals this week, Platinum too experienced a big drop that occurred between June 2nd and the 4th. Platinum prices this week dropped from $1,194/oz to $1,156/oz representing a -3.18% loss over the span of 7 days.
Palladium prices recorded a loss of -2.44% as it dropped from $2,864/oz last Wednesday to $2,794/oz at the time of writing. The metal experienced highs of $2,875/oz and lows of $2,761/oz.
Rhodium continues its rapid loss trend by losing -12.12% this week as it dropped from $24,750/oz to $21,750/oz. This is the metal’s lowest price in 16 weeks. Since the start of May, the metal has lost a massive -26.27%.
Gold prices were hard hit between the 2nd and 4th of June as the US Dollar Index (DXY) strengthened from 89.97 to 90.53 thanks to the jump in US private-sector jobs. Following that, Chinese PPI and CPI data was released which helped Gold with a modest recovery. China’s PPI was held at 9.0%, its highest level since 2008. Furthermore, the 10-year Treasury yield has fallen to its lowest level in a month which is another reason for Gold's move upwards. Despite that, volatility returns to the commodity as it awaits the CPI report and the Federal Reserve’s review of the interest rates. CPI rates are moving higher and higher recording 4.7% last month in the US. These levels are starting to worry some investors as they may be taken as a sign of inflationary pressure.
A senior financial adviser at Walsh & Nicholson Financial Group said that “You look across the board and everything is more expensive”. He mentioned it is something that is being monitored but as the Fed continues to promise to keep interest rates low regardless of inflation data coming in, investors can only take them for their word
6 Month Gold Price
Industrial metals are being hit the same way as Gold currently. This is despite demand soaring in past months. The move towards electric vehicles has been accelerated as of late as EV companies like Li Auto are recording higher than expected sales. The Li Auto stock this month gained a whopping 80%. This news puts the odds in Silver’s favor as it is the best conductor for energy and a key component in anything sustainable energy/electric vehicle.