Market Update | Silver, Gold & Palladium
Significant events over the world are paving the way for a steady course and possible spikes in the gold and precious metals marketplace. Economic tensions and bustling economies are creating intriguing conditions, and investors are staying abreast with slight corrections and future analysis.
Let’s take a look at where gold and precious metals stand today.
Gold and Silver Treading Water
During the past month, gold and silver climbed slightly in early April, only to dip shortly thereafter. The steady gait comes in at the heels of a robust dollar, which is soaring to significant highs. When the dollar surges, it’s typical for gold and silver markets to hold course or dip slightly. It’s when the dollar weakens that gold and silver values begin to take the throne.
Economic tensions in the US are in no shortage as the United States begins to further propel additional economic sanctions on Iran. The U.S. had previously looked the other way for some countries importing Iranian crude oil, but they’re negating the waiver. Relations are continuing to sour under the Trump administration and further degradation between the two countries could open the floodgates for further demand in gold and silver markets.
Further data from China signals a strong demand for gold and silver jewelry, as well as other precious metals. And Venezuela recently liquidated their gold assets, selling off around $400 million worth of gold. Frank Holmes, CEO of U.S. Global Investors weighed in with the following remark: "On a daily basis, in the past couple of days, it's a very attractive buy, you've got to buy when these countries are finally liquidating their assets before there's a change in government, and that's positive for the gold market."
Gold and silver analysts are recommending buying during the marketplace dip.
Palladium’s Slight Plunge—And Rebound
A physical industry shortage in palladium has garnered much attention on the precious metal. There has been a global supply deficit since 2012, and deficits are expected to continue well into the future. And the use of palladium is not slowing—the car industry is a significant consumer of palladium, using the metal in catalytic converters to mitigate toxins dispelled in car exhaust.
The shortage in palladium has, in part, seemed to create a surge in valuation. But even as it took 10 weeks for the value of palladium to rise from $1,300 USD to $1,550 USD, it only took 3 days in early April to set the metal back $205—a fairly massive correction in the little timespan. Today, palladium his climbed in rank again and is sitting comfortably at approximately $2,000 AUD.
Platinum has spiked in recent months but remains fairly unchanged in recent weeks in the metals marketplace.
Curious about gold, silver, or other precious metals as investments? Reach out to us at Jaggards—we’re Australia’s leading dealer in bullion.