Gold Positioned for Annual Decline, First in Three Years

APMEX

12/31/2018 10:18:50 AM

Daily Gold & Silver Market Report – 12/31/2018

• Gold prices set to see the first annual decline in three years. 
• Many analysts predicting bull markets for Gold in 2019.
• Growing hybrid car sales good for Palladium.

Gold Positioned for Annual Decline, First in Three Years

Challenged by trade tensions and the U.S. dollar for much of the year, Gold prices early Monday were set for an overall annual decline. This loss would be the first yearly decline for the metal since 2015. A six-month price peak of $1,286.34 per troy ounce was reached at 7:50 a.m. (ET) but quickly sank. By 9:50 a.m., Gold was trading at $1,282.80. In a Reuters report published by Fox Business News, one analyst observed that while Gold started off to a positive year in 2018, “a recovery in the U.S. dollar weakened prices and uncertainty on the U.S-China trade front weakened the yuan, further pulling gold down.”

In recent weeks, the U.S. dollar has lost some of its buying power, compared to other major currencies, which has allowed for a slight rebound for the Precious Metal. In spite of the year-end struggles, many market watchers expect to see prices exceed $1,400 in 2019.

Hybrid Car Boom Could Further Boost Palladium

The biggest winner among Precious Metals this year was Palladium. One of several Platinum Group Metals, the primary use for Palladium is in the catalytic converters of gasoline-powered cars and trucks. Many predicted that as electric vehicles grow in popularity, demand would decline, but that idea is yet to be proven right. A Bloomberg report published by Gulf News points out that hybrid-electric cars are a growing part of the low-emission car industry. Since these automobiles still require some fossil fuels, Palladium is needed to keep carbon dioxide emissions at bay.

Several firms are predicting much higher sales of hybrid cars in 2019. A recent report from JPMorgan Chase & Co. forecasts that hybrid engines, which made up 3 percent of the world market in 2016, will reach 23 percent of sales by 2025. These changes could also be good for Platinum, which is another common component used by some manufacturers of fuel cell vehicles. 

At 11:17 a.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,283.90 Up $0.07
• Silver, $15.52 Up $0.06
• Platinum, $795.90 Up $1.50
• Palladium, $1,268.70 Up $12.30

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (ET)! Or call us Fridays until 6 p.m. (ET)! If you have any questions about Precious Metals investing or simply would prefer to place your order by telephone, we are here to help.