Gold & Silver Market 7-19-2015
Once again we saw prices fall across most of the precious metals sector, with one big exception – yes, we were completely wrong about rhodium – and while some of it can be put down to the generally unsettled financial situation there are worrying signs for silver. If you’re looking at gold or the platinum group the short to medium term prospects are a lot better though, with no real reason for the recent slide in prices to continue. Hopefully we’ll see values bob back up to a more realistic level in the aftermath of sanity returning to the Eurozone. Right now stocks are enjoying a minor boost, which could explain the slip in metals.
Looking at gold first, last week was another disappointment – but not a major one. A steady decline all through the period saw the spot price drop $30.10, bringing it down to $1,132.80. That’s a bigger fall than we’ve seen for a few weeks but still not cause for panic. When you consider the rises in equities it’s actually not too unexpected, and there are plenty signs that share prices might not rise too much higher right now. If equities stabilize this week we’d expect to see gold do the same, and possibly even recover a few dollars. There’s no rush to sell gold at the moment, and in fact we’d advise that you be ready to buy if the price bounces off the $1,100 mark.
The picture for silver isn’t quite as bright. A fall of 78 cents – more than five percent – left the spot price at just $14.84 on Friday afternoon. With industrial demand still looking healthy that suggests confidence is trickling away again. There’s no real reason for that but the faith of the market doesn’t always run on reason, and it looks like silver is falling victim to the jitters. Don’t look for much support this side of $14.50, and the price could potentially go lower than that.
Platinum followed the overall trend, with a slow decline starting as soon as the markets opened and continuing right through the week. A major barrier was passed Thursday morning when the spot price fell below $1,000 for the first time in a decade; by close of trading next day it was sitting at $965.80, $66.20 down on the week before.
Some weekend gains made palladium look like a better bet, but again it started to fall Monday and kept going down all week. Friday’s closing price was $603, a fall of $46. The only brighter note there is that it fell below $600 at one point on Friday but recovered again sharply, indicating some possible support there.
And lastly rhodium. After months of sluggish activity, almost all of it downwards, we’d pretty much written this off as an investment for the immediate future. Then, much to our surprise, the price started climbing over weekend trading before rocketing up through Wednesday to peak at $930. On Friday it fell back slightly to $920, but that’s still almost $80 up on the week before.
So a confused week, with rhodium the surprise winner – although we don’t expect to see those gains repeated this week. For now the best advice is to wait for gold to turn around, and consider moving out of silver.