The tumultuous weeks on the precious metals market continue unabated: After gold marked its new all-time high of 2135 dollars/oz precisely one week ago, partly due to purchases by the Chinese central bank, we are struggling with the 2,000 dollar mark this morning. Gold will be one of the best investments in 2023 and will probably not be able to escape the profit-taking before the end of the year.
Silver almost reached the 26 dollar mark last week, only to start the new week more than 10% lower again. It is thus living up to its name as gold’s volatile little brother.
Platinum and palladium have not yet been able to reach parity, but this seems almost inevitable. The trigger for the extreme price movements is the interest rate policy. The probability of an interest rate cut in May 2024 is increasing, with the next meetings of the Fed and ECB scheduled for this week. The market will remain nervous.
“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.