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In this Weekly Market Report for Precious Metals we see some price gains followed by a leveling out. The big news of the week was the Federal Reserve meeting where they chose to not raise interest rates. There is somewhat of a mismatch between what the Fed is saying and what they are doing. In the weeks before the meeting there was a tone that an interest rate would happen, but then they immediately backed off. Some aspects of the U.S. economy have been performing very well, including housing numbers. This coming week, Federal Reserve Chair Janet Yellen and other members of the Fed will be giving congressional testimonies. This will also include a question and answer portion as well as discussion about Brexit. While fears about Brexit are still looming on global markets, they have eased as numbers show that there are higher chances of a vote to stay in the European Union. A Survation/The Mail survey showed 45% of voters wish to “remain” while 42% prefer to “exit.” The referendum vote will happen on Thursday, June 23rd.
Gold started the week at $1279.40 on Tuesday, June 14th. On Wednesday it was up to $1283.30, and on Thursday it got a big boost up to $1310.75. Gold has been trying to break that $1300 mark for several weeks. On Friday it dropped back down to $1290.70. Monday did not see much change, with gold ending up at $1292.60. Analysts believe that gold will be above $1300 per ounce by the end of the year regardless of current issues with U.S. interest rates and Brexit. Gold prices are likely to be weaker after the referendum going into August and September, with potential lows of $1200, or even $1180 or lower. Prices will then go up again toward the end of the year.
Silver started at $17.25 on Tuesday. It also got a big boost on Thursday, ending at $17.71. On Friday it was down a bit again to $17.37. Silver ended up another 20 cents on Monday at $17.57. One analyst from CMP Group explained that the “real consequences” of a move to leave the EU may include a “shift of economic, financial, and political power away from the United Kingdom, with continental Europe and the United States being the primary benefactors.” China also would be “set to gain at England’s expense.” Silver has been following gold and the markets closely, and we expect those trends to continue.
Platinum started the week at $983 and reached the weekly high of $985 on Thursday. On Friday it was down to $968.On Monday it got a boost up to $978. Wage negotiations may have some effect on prices in the next couple of weeks. The premium for sponge remains high, but industrial demand is still slow.
Palladium did not make any major moves this week. It began at $540, and hit the week-long high of $544 on Wednesday. On Monday it ended at $535.
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