Global Precious Metals MMI – Are High Interest Rates Causing Precious Metal Investment Risks?

October’s Global Precious Metals MMI (Monthly MetalMiner Index) traded sideways, falling slightly by 0.98%. The index held higher than other October MMI’s (a majority of which fell in price) due to high interest rates, recession fears, and slowing economic activity. Due to these the current economic climate, investors sought out precious metals for investment reasons more than in previous months. However, most precious metals, save for platinum, remain within a steady downward trend.

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New Lows Cleared for Gold

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Early in September, gold prices cleared previous lows and created new ones. As of October 4, however, gold briefly spiked before dropping in price again. Recessionary fears typically drive precious metal prices up. This is because investors often exchange currency for precious metals like gold to hedge against inflation. However, many global factors, such as the war in Ukraine, energy shortages, and supply chain disruptions continue to pull metal markets in different directions.

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Precious Metals: Palladium

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Much like gold, palladium prices continue to seek new lows, declining slowly off short-term resistance levels. If these new lows form it will also confirm lower highs. Ultimately, this indicates a slow decline toward $1,500 per ounce.

Silver Prices in Slow Decline

Furthermore, silver prices are also in a slow decline, currently seeking a reversal point near support levels. This could undercut the current new lows previously formed at 17.57. However, until then, a reversal confirmation would need to confirm a trend for silver prices in this range.

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Precious Metals: Platinum

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Platinum prices managed to break the trends afflicting its three precious metal siblings. In addition to a price increase, platinum prices consolidated near the 820-860 range support range, where it looked for a break to the upside. Furthermore, short-term confirmation of higher lows will likely lead platinum to the upside. It could also mean that platinum prices will seek further resistance in the long run.

Global Precious Metals MMI: Biggest Price Moves

• Gold bullion dropped in price by 3.6%. Prices at the month’s start sat at $1,661.10 per ounce.
• Furthermore, silver ingot rose in price by 3.4%. Prices at the month’s start sat at $19.02 per ounce.
• Moreover, platinum bars rose in price by 1.4%. Prices at the month’s start sat at $859 per ounce.

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Article written by Jimmy Chiguil and Jennifer Kary