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Gold & Silver Market 10-10-2015

October 10, 2015 0 Comments

Last week was a generally good one for the precious metal sector; we saw every spot price rising apart from one conspicuous exception, which of course was rhodium. In fact it was a good week for markets as a whole, with equities also performing strongly and even some signs of life in crude oil. It’s unusual to see metals performing so strongly alongside rising share prices so that does raise the question of what will happen if the Dow keeps rising, but for the moment things are looking pretty good.
Starting with gold, the spot price started the week slightly down after a poor weekend but quickly started regaining ground. It dipped again on Wednesday but a rally pushed the price back up and by close of trading Friday an ounce was selling for $1,156.40. That’s a gain of $18, or just over 1 percent, so it isn’t spectacular – but it’s definitely the sort of movement we’re looking for, and given the performance of equities through the week it’s much better than expected. We do feel that gold is seriously undervalued at the moment so there’s a lot of potential for more gains in the next few weeks.
Silver did even better, and worries about a collapse of confidence are now fading steadily. It actually rose over the weekend and kept heading up through to the middle of the week. It did lose some ground Wednesday but was back on track the next day, and gained 55.5 cents to close at $15.82. That’s extremely encouraging, and makes us believe that investors are waking up to the fact silver’s priced a lot lower than it should be. Consider taking advantage of the current low price to build up a strong position.
We had doubts about platinum, following a significant slide the week before, but last week it did very well and rose right through the period. The final price was $981, a $71 increase on its previous close. That takes it back to where it was in mid-September and is on course for much more realistic prices than we’re seeing right now. Industrial demand remains strong, so there’s no reason for platinum to slip back just now. Hold off on selling whatever you have, and see how high its current momentum will take it.
Meanwhile palladium continued to rise at a more modest pace, gaining $17 over the week to close at $710. There were a few ups and downs along the way but the general trend is in the right direction, as it has been since late August. Palladium still hasn’t recovered the vigor it had earlier in the year but we’re happy with this steady progress.
And finally rhodium, which dropped $15 to $745. This still doesn’t look like a good buy but it can’t keep going down forever, and at some point in the medium term it’s going to make sense to start picking up a cheap supply. That point probably isn’t too far away now.
So a generally good week, despite a strong equities market that should have kept metals down. It will be interesting to see if this week turns out as favorably.

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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