“Rhodicoaster” – Gold Scratching the 2000 Mark

by | 30. Oct 2023 - 13:22 | Spotlight on Precious Metals

The Middle East continues to dominate the news. With the looming ground offensive of Israel in the Gaza Strip, a new phase of the war is entering and, thus, also a further escalation stage.

Gold and silver will continue to follow the events in great detail and react ad hoc – in principle applies for the two crisis metals: Better to have than not to have! Gold has already tested on Friday at the 2000 $ mark and trades this morning slightly below it. It feels here the well-known drop is missing to bring the barrel to overflow. On the other hand, gold is trading in a heavily overbought environment, so the move of the last few weeks is crying out for consolidation. Short-term outlook or forecast in such a fragile environment is challenging.

Another crazy week for the platinum metal rhodium: the complete gains of the previous week were given back, and the price of $4000/oz even wobbled for a short time. A total sell-off within one day made the price fall above $1000/oz. It then recovered by 15% – a real roller coaster ride. It was presumably driven by so-called short covering, i.e., the balancing of existing short positions, whereby in the meantime, it can no longer be ruled out that one or the other speculator has been up to his mischief, which certainly had nothing to do with normality.

In the shadow of all this, Iridium is developing clammily into a sustainable big winner in the precious metals market. We expect further price movements in the coming weeks, increasing demand, especially from the hydrogen industry, and the limited availability hardly allow any other conclusion.

“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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