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 experienced a volatile week with some anxiety awaiting the FOMC meeting. Through all the drama there is not much to report as the price per ounce gained just over $1.00. Opening the week at $1,923.00 and closing at $1,925.00, the yellow metal saw a high of $1,941.00 and a low of $1,917.00. As was already priced into all the markets, the Feds paused the interest rate hikes until another meeting. The market also has one more rate hike priced in for 2023, and two cuts in 2024. After dancing around the $2,000.00 level during April and May, this lull in action testing the $1,900.00 mark has become stubborn.
These required adjustments in all markets are commonly called a correction or consolidation. Smart investors call them buying opportunities when resistance is set up. Currently $1,900.00 is setting up as key level of support. While technical charts indicate the possibility of lower resistance levels, buying all the way down to $1,800.00if necessary is likely a sound strategy as the same charts show another challenge to the all-time high of $2,072.00. Catching intermediate highs and intermediate lows in Gold is speculative. Over time, Gold marches forward with predictive corrections when it becomes temporarily overvalued. Investors looking to diversify with Gold should not wait for opportunities to buy Gold. Investors should buy Gold and wait.
As we have become accustomed, Silver stood on its own this week ignoring the trials that Gold endured and turned in a solid 2% gain. Opening the week at $23.04 and closing on Friday at $23.56. Silver’s consolidation has been equally stubborn as the price per ounce is significantly lower than the May high of $26.06. The consensus puts Silver more undervalued than Gold as it sits at about 50% of its all-time high achieved twice in history. The exciting part of the shiny metal’s current price level is this 26% YOY gain has been achieved by investor demand solely with manufacturing demand almost nonexistent. When the global economic picture cycles back around to a boom, Silver bugs are prepared to enjoy their long awaited spoils.
Platinum and Palladium followed Silver in ignoring the news of the week with each showing gains. Platinum opened at $929.00 and closed at $931.00 protecting the much-needed gains from last week. Palladium only slightly better starting the week at $1,249.00 and finishing at $1,255.00. Surprisingly the Platinum family metals did not react negatively to the United States Auto Workers strike. There is no news on the horizon that will help these two commodities. And with the increase in electric vehicles worldwide, it seems the auto industry demand is a memory.
Patience is the word of the moment for precious metals. The usual autumn rally appears to be on hold. And if we are honest, it appears that everything is on hold. The incumbents are bragging about historic inflation and record spending while the rest of the country tries to figure out how they could be so wrong about their own opinion of the current state of the state. At some point the smoke will clear and the mirrors will break. Markets will respond and commodities will rally as safe havens. The precious metals have fared well despite the propaganda and have a solid base to build from.
There is never a bad time to buy Gold and Silver. But some times are better than others.