Category: Market News

Silver Nears 7 Year High, Closing in on US$30

Sirhc

Silver edged above US$26 per ounce on Monday (July 27), adding more that 31 percent to its value since January.

Safe haven demand and record exchange trade fund (ETFs) inflows have been the primary catalysts for the metal’s sustained growth in Q2. Reinvigorated animosity between the US and China, and concern a second wave of COVID-19 will further weaken the global economy have been key drivers recently.

The white metal is now back in territory unseen since September 2013, with motivators in place to move it higher.

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Gold may eclipse dollar as reserve currency after outsize coronavirus spending: Goldman Sachs

Sirhc

The U.S. dollar’s longstanding status as the world’s reserve currency is at risk after the greenback’s weakening by unprecedented government efforts to shore up the economy during the COVID-19 pandemic, according to Goldman Sachs Group Inc.

Ballooning federal debt levels and a potential shift in favor of inflation at the Federal Reserve amid increased geopolitical hostilities, domestic unrest and an onslaught of new COVID-19 cases are among the headwinds the greenback faces, according to the firm’s strategists.

“Real concerns around the longevity of the U.S. dollar as a reserve currency have started to emerge,” wrote a team of Goldman strategists led by Jeffrey Currie.

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Gold: Set to test $2300 over next 12 months – Citibank

Sirhc

Analysts at Citigroup have revised up their gold-price forecasts across the time horizons, given the latest relentless rise in the yellow metal to fresh record highs of $1981.34.

Key quotes

“Still further to go, short-term target $2,100, then $2,300 in 6 to 12 months.”

“Prices seem biased to stay higher for longer, with 2019-2020 emerging into a unique bull regime for the yellow metal.” 

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Gold pullback extends to start the session, silver also down by 9% on the day now

Sirhc

The pullback is getting violent

Gold has fallen to a low of $1,907 on the day as the sharp fall continues following futures touching over $2,000 earlier in the day. Meanwhile, silver is tailing off to a low of $22.32 or down by 9% after having touched just above $26 in Asian trading earlier.

As mentioned yesterday, the $2,000 mark may be a bit of a stretch for gold given how rapid the rise has been since firmly breaching the $1,800 level at the start of last week.
Historically, the parabolic moves in the commodities space tends to lead to violent pullbacks and today is but an example of that. For some context, the high for gold today was $1,981 and we are trading nearly $70 below that now.

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Platinum Continues To Lag Other Precious Metals; That Could Be About To Change

Sirhc

This article was written exclusively for Investing.com

  • Gold hits an all-time high
  • Silver’s wild ride to the upside
  • Palladium and rhodium in bull markets
  • Platinum could be next

Lately, precious metals have been all the rage. Early Monday morning, spot gold hit an all-time high, rising above $1,933; at time of writing, gold futures are closing in on that level too. Last week, silver jumped to over $23 per ounce for the first time since 2013. It’s currently trading above $24.

Palladium, one of the Platinum Group Metals, was hovering above $2300 today, over five times higher than its low in early 2016. Rhodium, another PGM that traded to a low of $575 in 2016, was trading around $8700 per ounce.

Platinum, however, has been the laggard in the sector. It continues to languish below $1000 per ounce.

While gold is heading toward another record high in US dollar terms, and silver handily surpassed its critical resistance level of $21.095 last week, platinum is sitting at a price that is less than half its record level at $2308.80 per ounce from 2008. Platinum has suffered from a lack of investment demand, even though producers have reduced output because of the precious metal’s low price.

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