As speculated in the previous week, gold has again proven to be a safe haven for investors. The conflict between Hamas and Israel is unlikely to be resolved quickly; instead, there are fears of a conflagration throughout the region. Not to be forgotten is the war in Ukraine, which continues unabated. Thus, two existential wars have flared up just a few hours’ flight from the center of Europe. This environment should support the gold price in the medium term. Silver reacted to the same extent and almost made up its losses from the beginning of October. Gold has regained the $ 1900/oz level, and silver is trading back above $ 22.50/oz. Gold should take the 200-day line at $1929/oz before it has further upside potential. 1900 $/oz could secure the range downwards in the short term.
Another metal stood out last week in the shadow of these geopolitical issues. Since the summer, there was hardly any movement in the rhodium market but presumed hedging by the industry through extensive purchasing and a possible stimulus package by the Chinese government now literally overwhelmed the market. A more than 30% price increase within one working week speaks for itself, almost unthinkable in the gold or silver market. The price reacted immediately to the high demand and limited availability and increased by $1,200/oz or 36 EUR/g.
In the next step, we also expect further movement in the iridium market, where small but steady price increases have occurred in the shadow of the other metals. A Chinese stimulus package would also generate demand here.
The next few weeks will undoubtedly be exciting, as the focus is now increasingly on 2024.
“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.
