Why Is Platinum Surging?

Cassie Bastien

8/8/2017 1:24:40 PM

Daily Gold & Silver Market Report – 08/08/2017

ETF Trends Reporter Tom Lydon says Platinum is the third-most traded Precious Metal in the world, behind Gold and Silver, and is scarcer than its rivals. Furthermore, reporter Eddie Van Der Walt for Bloomberg said, “Platinum posted its best weekly advance since January, climbing for six-straight days as the U.S. imposed further sanctions on the world’s second-biggest producer.” Additionally, Lydon says more Platinum “is expected to be consumed this year compared to how much producers are able to mine, meaning demand will outpace supply.”

Gold Prices Find Support in Low $1,200’s

One big explanation for the rebound in Gold prices is recent interest rate moves and what is happening in bond markets. EconomicTimes Reporter Aasif Hirani says, “The prolonged [sic] period of low interest rates is about to end and with it, the bull market in fixed income that has lasted more than three decades.” However, even with rising interest rates, the U.S. dollar saw one of its biggest declines in recent months. Hirani says the dollar index has not been this weak percentage-wise since 1986. He also mentions supply and demand are in close watch as the biggest months for Gold, historically speaking, are upon us.

Can Spot Prices of Silver Rebound?

Silver prices plummeted 2.3 percent Friday after the jobs report showed 209,000 jobs were added in July. Money Morning Resource Specialist Peter Krauth said,“The even bigger piece of data was the unemployment rate, which fell to a 16-year low of 4.3 percent. That's bolstered the [U.S. Federal Reserve's] case for another interest rate hike in 2017, p, which pushed the U.S. dollar index up from its two-and-a-half-year low of 92.84 on Thursday, Aug. 3, to 93.49 on Friday, Aug. t4.” However, Krauth says these declines make the gray metal a better bargain. Krauth said, “Silver's losses have pushed the Gold/Silver ratio back above 77, meaning [Silver] trades at a value compared to Gold.” Nonetheless, Krauth is positive even with all the volatility within the Precious Metals market, a rebound is likely to happen…but when?

At 2:24 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,258.60 Down  $3.10
• Silver, $16.49 Up $0.13
• Platinum, $974.50 Up $2.90
• Palladium, $902.00 Up $10.80

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