Gold, Palladium Price Charts Finally Show Positive Numbers

Cassie Bastien

9/29/2017 9:22:48 AM

Daily Gold & Silver Market Report – 09/29/2017

Gold spot prices are on track to record a 2.5 percent decline for September, which would mark their largest monthly fall in 2017, according to Reuters Reporter Eric Onstad. Jens Pedersen, senior analyst at Danske Bank in Copenhagen, discussed the August personal consumption expenditures price index, saying, “If we get a negative print, then we could see rates fall, the dollar fall back and Gold rise on that, but if we get a number in line with expectations or slightly above that, then it's not likely to do much.” Gold is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-yielding bullion, while boosting the greenback. With Federal Reserve Chair Janet Yellen providing further information regarding the December rate hike, we could see the price of Gold make a significant change. Onstad says Palladium traded at a premium to Platinum for a third-straight day after prices for the metals hit parity Wednesday for the first time since 2001. “Palladium is short-supplied and also there's very good demand from auto sectors. As long as this situation continues, we'll see a premium in Palladium,” Yuichi Ikemizu at ICBC Standard Bank in Tokyo said. Palladium and Platinum are both primarily consumed by automakers for catalytic converters, but Platinum is more heavily used in diesel vehicles that have fallen out of favor. In fact, Platinum prices have fallen 0.2 percent an ounce, putting them on track to record their worst month since March.

Silver Price Forecast Nears $17 an Ounce

Market analysts and traders alike watched as spot prices got closer to $16 for an ounce of Silver. But after watching the overnight price charts, Silver prices are starting to show positive gains, however minimal. FX Empire Reporter Christopher Lewis said while the gray metal shows a small amount of steadiness around $17, he will not get his hopes up until the price of Silver holds above $17 an ounce for consecutive days. He said, “I think short-term traders have taken over this market, and longer-term traders that are bullish on Silver are probably best served by either trading options, or building a physical stockpile of the metal.” Regardless, Silver markets can be extremely volatile at any point. As onlookers have seen in recent weeks, even with all the geopolitical concerns, Silver prices seem somewhat muted. Lewis says to not only watch the price of Silver, but to keep an eye on Gold prices as “it tends to lead the way for Silver as the two are positively correlated over the longer term.”

At 10:23 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,287.20  Down $1.30
• Silver, $16.84  Down $0.07
• Platinum, $918.10 Down $6.60
• Palladium, $938.00 Up $4.10

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