Gold: Consolidation Incoming!

by | 6. Nov 2023 - 11:07 | Spotlight on Precious Metals

Less than a month has passed since Hamas attacked Israel, and the Middle East found itself at war again. Gold and silver immediately acted as safe havens. Unfortunately, “normality” has now returned. This is not the case for the people on the ground who are suffering from the fighting. However, as indicated in the last report, both precious metals are overbought. Gold has retreated somewhat from the 2000 mark, while silver could not overcome the resistance of the 100 and 200-day lines. This leaves further upside potential in the medium term, especially if the central banks continue to act as buyers on the market regarding monetary policy. This fact has been repeatedly ignored in recent weeks. According to the World Gold Council, we have the second-strongest third quarter behind us. Q3 had a purchase volume of approximately 337 tons, and for the year as a whole, there are currently 800 tons of net gold purchases from the central bank sector. Insane figures!

We continue to see a positive trend in platinum and iridium, particularly in the short term; both metals are currently in unspectacular and calmer waters but with clear positive signs in recent weeks. Palladium also appears to be well supported for the time being at 1100 $/oz and is repeatedly attracting industrial buying interest in this area. Basically, we assume that thoughts are already turning to the coming year, so we should look a little further ahead.

“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.

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