Introduction to Precious Metals
The gold price experienced a week of downward momentum, nearing the US$3,400 per ounce level on Monday, June 23, as investors reacted to the escalation in tensions in the Middle East. However, it sank to just above US$3,300 the next day after US President Donald Trump announced that Israel and Iran had agreed to a ceasefire. The decline continued as the news calmed investors, and the gold price dropped further when Trump announced that the US had signed a trade deal with China.
Gold Price Fluctuations
The gold price took another hit toward the end of the week, closing Friday, June 27, at about US$3,274. This decline was a result of the ceasefire and the trade deal, which reduced the safe-haven appeal of gold. Despite this, many experts are optimistic about the future of gold, with some predicting that it will continue to rise in value.
Silver and Platinum Market Trends
It was a different story for other precious metals, such as silver and platinum. Silver enjoyed an uptick, rising as high as US$36.79 per ounce before pulling back to the US$36 level. Randy Smallwood of Wheaton Precious Metals expressed his excitement about silver, stating that it has more fundamentals behind it than gold. Platinum also rose, crossing the US$1,400 per ounce mark for the first time since 2014. This move has been supported by a shift toward platinum jewelry due to the high cost of gold and larger platinum imports to the US.
Expert Insights
Jonathan Butler of Mitsubishi noted that the tight forward market conditions, with a deep backwardation across the curve, will continue to provide support for platinum in the coming weeks. The recent trends supporting platinum’s move include a shift toward platinum jewelry and larger platinum imports to the US. Miners have also faced challenges, which has led to tight forward market conditions.
Gold Repatriation and Market Updates
Germany and Italy are facing calls to bring home gold stored in the US, with politicians and economists pushing for repatriation due to global geopolitical uncertainty and concerns about Trump’s potential influence on the Federal Reserve. However, for now, it seems unlikely that they will do so, with Germany’s Bundesbank stating that it sees the New York Fed as "trustworthy and reliable."
Upcoming Events and Interviews
The Rule Symposium will run in Boca Raton, Florida, from July 7 to 11, featuring interviews with key figures in the resource space, including Rick Rule, Adrian Day, Lobo Tiggre, Andy Schectman, and Dr. Nomi Prins. Readers can submit questions and topics they’d like to see covered by emailing cmcleod@investingnews.com.
Conclusion
In conclusion, the precious metals market experienced a week of fluctuations, with gold experiencing a decline and silver and platinum rising. Experts are optimistic about the future of these metals, with some predicting that they will continue to rise in value. As the market continues to evolve, it’s essential to stay informed about the latest trends and updates. By following the news and expert insights, investors can make informed decisions and stay ahead of the curve.
