Has Silver Already Peaked for the Year?

Cassie Bastien

4/27/2017 2:42:35 PM

Daily Gold & Silver Market Report – 04/27/2017

Although spot Silver prices were outpacing Gold year-to-date’s performance, says Myra P Saefong, Markets and commodities reporter with MarketWatch, this week shows that Silver prices could be on a downtrend for possibly a couple months to come. According to Taki Tsaklanos, lead analyst at Investing Haven, calendar years are very important to Precious Metals. “Silver tends to peak in April — the only exceptions being the raging bull market years of 2009 and 2010.” Tsaklanos says that this “seasonal pattern” in Gold and Silver prices is due to the high demand between the months of December to April. Saefong says that the outlook for Silver prices can be harder to predict because of its dual role as both a Precious and a base metal, which means that the grey metal can react in an “unpredictable way.” However, going forward, Tsaklanos feels that “it is more likely that the precious side of Silver will become the more dominant trend, and that is pointing down.”

Geopolitical Risks Could Support Gold Prices

Gold, which acts as both a safe-haven and a hedge against debasement risk, has historically been the commodity most exposed to geopolitical risks. However, Sandeep Kanihama with FXStreet.com says, “The recent period of heightened uncertainty has been no exception to this trend, with gold up more than 10 percent YTD.” Kanihama says the results of the first round of the French presidential election on Sunday, which saw Mr. Macron and Ms. Le Pen advance to the next round, has caused Gold to be off by $17 per ounce. The key catalysts we see for this move, Kanihama says, will be markets re-pricing to reflect higher U.S. rates, increased expectations of U.S. tax reform, and stronger growth (as the hard data catches up to the surveys). Nonetheless, Precious Metal prices remain volatile due to a significant increase in political uncertainty.

At 3:42 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,267.30 Up $1.80
• Silver, $17.42 Down $0.08
• Platinum, $948.60 Down $0.90
• Palladium, $819.00 Up $8.90

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