A few weeks ago, a fall below the mark of $ 1800 / oz was feared. Now, the picture has completely changed in light of the Middle East conflict. This morning, gold is trading above $ 1975/oz and thus within striking distance of the fabled $ 2000 mark. It is even more evident in EUR, where we are just a few places away from the all-time high, a clear signal of the precious metal’s strength. Silver has also had a strong run but is currently hanging on to strong resistance. 100- and 200-day line are currently running parallel at around $23.30/oz. Furthermore, the RSI of both metals is in the 70 area, a signal that there is trading in the overbought area in the short term. We assume that both metals must consolidate first before further steps follow – the outlook would be different in case of an escalation of the situation in the Middle East.
Another look at the PGMs: Palladium is trading at the lowest price for five years, and that in a strongly oversold segment. Speculatively, it is possible to bet on a countermovement in the short term, but there are limits given the end of the combustion engine and the substitution by platinum in the auto catalyst. Rhodium has also calmed down somewhat after the spectacular price movements of the last few weeks. In the shadow of all this, the movement of iridium has almost wholly disappeared. Producers currently show hardly any selling prices, which speaks for an apparent shortage in the market. In the meantime, the price has lifted well above the $5000/oz mark again, and further developments could certainly follow, especially with the increasing demand from the hydrogen economy in 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.
