The November Global Precious Metals MMI (Monthly MetalMiner Index) dropped by 4.06% (between October 1 and November 1). However, between November 4 and November 10, silver, platinum, and gold prices shot up. Palladium prices also began rising during this period, but not quite to the extent of its three counterparts.
Many believe the price surge is a response to the historically high US dollar finally beginning to weaken. The spike could indicate investors want to buy into precious metals while they can, before the dollar slips too much. However, many bearish factors continue to put pressure on the market, meaning the spike could prove short-term at best.
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Precious Metals: Gold Prices Spike
In times of uncertainty, particularly during election periods, inflation, and US dollar fluctuation, precious metals often rise. This is mainly due to buyers seeking a “safe haven” for their dollars until the volatile factors subside. It’s possible Gold’s recent spike could correlate with this historical trend.
Indeed, prices have – at least temporarily – broken to the upside. They’ve even smashed through the bearish channel, rising out of short-term resistance zones. However, despite prices rallying this past week, long-term resistance levels will continue to apply bearish pressure on gold. This is especially true as prices near $1,840 per ounce.
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Palladium: Temporary Bounce Back
After the breakdown from palladium’s summer lows, prices began to descend steadily. Last month, they even managed to unexpectedly burst through the bearish channel. However, despite prices breaking short-term resistances, long-term bearish pressure still remains on the market, just as it does with gold. For palladium, this pressure is centralized around the $2,120 per ounce range. Specifically, many expect long-term resistance solidification to form.
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Silver: Bulls Take Over
The story with silver appears somewhat different from that of palladium and gold. At the start of November, silver began a significant rally. This cleared previous highs and potentially indicated a short-term bull rally. Indeed, any bearish pressure will have difficulty bringing down silver’s bullish sentiment. Currently, prices continue to seek even higher points. This will only continue if silver closes above $21.00 per ounce, as it lacks the same long-term bearish sentiments as other precious metals currently face.
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Precious Metals: Biggest Price Shifts
- Platinum bars rose sharply by 7.8%. Prices at month’s start sat at $926 per ounce.
- Month-over-month, silver traded sideways, going up a slight 0.6%. Prices at month’s start sat at $19.14 per ounce.
- Before palladium’s sharp increase after November first, palladium dropped in price sharply between October 1 and November 1. Prices fell 18.9% and sat at $1,782 per ounce at month’s start.
- Before beginning its November rally, gold traded sideways month-over-month, dropping a mere 1.7%. Prices at month’s start sat at $1,633.6 per ounce.