Further Weakness Ahead for Gold Prices

APMEX

7/20/2018 11:24:58 AM

Daily Gold & Silver Market Report – 07/20/2018

In the past, investors have turned confidently toward Gold during trade wars, but the tipping point has not yet occurred in 2018. Other reasons cited for recent low prices include low physical demand and rising U.S. interest rates. As reported by CNBC's Suki Cooper, who analyzes the Precious Metals markets for Standard Chartered, “It seems to me a lot of that has to do with the fact that we're in a physically weak period, and you normally would have a better floor for prices.

Experts Brace for Claims of Silver Price Manipulation

The price of Silver has officially dipped below $16 per ounce and has shown signs of moving even lower. Silver futures at the COMEX fell to similar levels during the last week of June. Alongside Gold, Silver has mostly declined for the past few months.  According to Seeking Alpha, each price slide brings new accusations of price manipulation in the Silver futures market. During the 1980s, governments and some dealers manipulated the price of Silver. In the article, Andrew Hecht, commodity and futures trader, suggests that “Silver has a long history of price manipulation - the market is "squeezably soft" at times… No bank is going to risk its capital with a massive short position in Silver.”

Demand for Platinum Expected to Jump

Toyota Motor Corporation announced plans to increase production of hydrogen fuel cell automobiles by 2020. According to a report on S&P Global, Toyota intends to expand manufacturing to 10 times their current output, to approximately 30,000 units per year. Platinum, as well as Palladium, are trusted components of catalytic converters in fuel cell vehicles, as they facilitate a reaction between oxygen and hydrogen. Hydrogen cell catalysts typically require 10 grams of Platinum, double the amount needed in today’s gasoline powered cars.

At 12:24 p.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,231.90 Up $5.30
• Silver, $15.59 Up $0.12
• Platinum, $833.50 Up $25.50
• Palladium, $897.20 Up $23.00

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