Welcome back to our weekly precious metals market update, where we provide you with a comprehensive overview of the performance of gold, silver, platinum, and palladium. Whether you are a seasoned investor or someone considering precious metals as an investment option, this update will equip you with valuable insights into the recent performance of these timeless assets.
Gold
Another tough week for Gold as trading began at $1,848.00 and closed at $1,833.00 on Friday afternoon. A better-than-expected jobs report kept any chance of a rally late week from occurring. As geopolitical events in the Middle East heat up, Gold and Silver should get at least a short-term bump. Expect all eyes to be the breadth and the depth of the conflict between Israel, Hezbollah, and Hamas.
If an aging Supreme Leader in Iran is bent on a last opportunity to “wipe Israel off of the map”, this despicable act of cowardice could extend beyond the Arab Peninsula. Tensions will surely remain high in the coming days as retaliation continues and the United States comes to the aid of our ally. Global geopolitical uncertainty has always been a driving force in the price of Gold. Until there is a sustained ceasefire in this current war, tensions in the Middle East will trump any economic news released.
Silver
Silver followed her big sister as the economy continues to show weakness but is reported to be booming. Opening the week at $22.18 per troy ounce and closing at $21.60, the only difference in performance last week was that Silver managed an impressive rally from the week’s low of $20.75 late week.
The Israeli response to the attacks on the southern border and the world’s response in the coming days will certainly affect the price of Silver in the coming days.
Platinum/Palladium
Platinum and Palladium were both down for the week. Platinum opened at $908.00 and closed at $881.00 while Palladium fared weaker, beginning the week at $1,248.00 and finishing at $1,161.00. Expectations in the Platinum family of metals remain negative with a single buy signal being that Platinum spot price currently is now about the same as the cost to mine the same ounce of metal. There is no benefit to selling at a loss so miners will either produce and borrow against the metal without releasing it to the market or shutter the mines.
Conclusion
A perfect storm is brewing in the markets. The two most critical components of Precious Metals pricing have always been the strength of the other financial investing assets, and geopolitical tensions. With both boxes being checked currently, smart money is diversifying into the safety of Gold and Silver.
These safe havens have always been in highest demand and provided the necessary cover when times like these are unfolding. There is never a bad time to buy Gold and Silver. But, some times are better
than others.
