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Gold and Silver Market Update (9/7/14) – Golden Eagle

September 7, 2014 0 Comments

Yet again the market seems to have turned against precious metals last week, with spot prices down right across the board. This was a surprise to many analysts as the previous period closed with some definite signs of movement in the right direction, and no reason to expect a renewed fall. Despite that, most prices started dropping on Monday or Tuesday and recoveries later in the week were mostly limited.

Firstly, gold reversed a trend that had been looking promising and dropped right through the support we’ve been seeing at $1,275. It made it all the way down to $1,260 before bouncing slightly, ending the week at $1,268.80. Based on its performance over the last few days it doesn’t look poised to rise right away. If the slide continues analysts will be looking for new support to develop around $1,250, but if that doesn’t happen we could even see the price dip below $1,200. On the other hand even at the current gold price is seriously undervalued, so it’s definitely not time to sell. Instead think about building up your holdings at a bargain price.

Silver followed pretty much the same pattern as gold but lagged a day behind, going nowhere much on Monday then taking a dive first thing Tuesday morning. Again there wasn’t much of a rally before trading closed for the week, leaving silver prices down 26 cents at $19.20 per ounce. Some digging around the silver market does turn up a lot of activity around exchange traded funds though – these managed silver instruments picked up more metal in August than they did in the rest of the year to date, so it looks like a lot of people are confident the price will rise in the medium term.

Platinum continued to track gold, closing $21 down at $1,399. It did briefly look as if it would stabilize on Wednesday but couldn’t quite hold on to its small gains and dropped back. Again we think this metal is undervalued and worth buying into at the current price.

Palladium was a big loser, although that’s probably because it ended the previous period on a 5-year high. A very sharp fall on Monday and Tuesday took it from $920 all the way to $870 before it steadied and eased slowly back up to $885. That’s still a $35 loss, but demand is still strong and there are no serious concerns here. Palladium has probably been the best-performing precious metal so far this year and is definitely work staying with.

Finally, rhodium. This was probably the closest thing to a success story all week. Although rhodium did fall early in the week along with everything else, it came almost all the way back up again, closing within cents of Monday’s opening price at $1,260.

Many analysts thought the precious metal market was ready for a climb after the previous week’s activity, but it looks like that might have been a premature conclusion. This week will have left plenty of investors shaken. At base it’s a solid sector, though, and we think all the main metals are definitely undervalued right now. That means that in the medium term at least the only way is up.

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Filed in: Market Updates

About the Author:

Clint is the director of marketing at Golden Eagle Coins. Son of Richard Stelfox, co-founder of the company, Clint has been living and breathing coins his entire life. After trading for a Philadelphia Stock Exchange firm for several years Clint returned to give Golden Eagle the online presence it has today.

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