Are Silver and Platinum Finally Kissed Awake?

by | 17. Jul 2023 - 11:38 | Spotlight on Precious Metals

The support we predicted at the 200-day line has proven itself. Even more, it was the basis for a countermovement, which we actually only know from silver. The inflation data from the U.S. gave the starting signal for this. The significantly lower CPIs (Consumer Price Index) have set the causal chain in motion. This is because lower inflation strengthens the probability of an interest rate flattening, pausing, or even cutting in the U.S. dollar area. Since silver experienced a strong sell-off at the end of June, it was now time to make up for it. 7.5% within a few days is quite an announcement. We now expect silver to consolidate for the time being before planning further steps. The next resistances are in our opinion around 25.20 US$/oz and 26.10 US$/oz, downward secure for the time being 24/23.50 US$/oz.

Platinum shines with a similar strong movement in the range of over 7%. In the range of US$ 900/oz, platinum is clearly too cheap in my opinion, we have seen increased buying interest from the industry. Medium-term stocks have been built up here, thus hedging the very favorable price level. A sensible measure that is likely to pay off. Platinum will certainly have to contend with the strong resistance in the US$1000/oz area. I am sure that this will be taken sooner or later, then the way would be cleared here as well. The global economic situation will ultimately decide when this step will be taken. Because now, the second half of 2023 is still afflicted with some economic uncertainty factors, not only the Chinese economy. Terms like deflation are now doing the rounds there, so it remains to be seen what further developments will be like.

Gold also went up after the inflation data, but not as significantly as silver, moreover, the movement in the EUR currency area is not visible due to the weakness of the US$. On the contrary, the gold-EUR price even became more favorable.

The EUR/USD at over 1.12 USD thus naturally also has an impact on the quotations of metals that trade stably in US$, such as iridium and ruthenium. These are currently cheaper in EUR quotes.

Another quick look at rhodium (Rh): strong buying interest last week was accompanied by a price increase of partly over $500/oz. That’s more than 10%, making Rh the weekly winner ahead of silver and platinum. The market remains highly speculative and volatile. The electroplating industry has rediscovered Rh at prices, but also the glass industry (so-called bushings) seems to be interested again.

“PGM – Spotlight on Precious Metals” is a commodity column focused on gold and precious metals but mainly dedicated to the widely discussed yet rarely analyzed platinum group metals (PGM). Focused on the industrial applications of the metals as well as their potential as tangible assets, the abbreviation PGM has a twofold significance: With Philipp Götzl-Mamba we could win an experienced precious metal trader, operating at the cutting edge of the industry, sharing his knowledge with us. Financial expert Jens Weidenbach regularly compliments the column with an overview of the currency and capital markets, which have an influence on commodity prices that should not be underestimated.

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