Gold and Silver Market Update (1/24/2015) – Golden Eagle
Overall it was another generally good week for precious metals, with continued progress for the two big sellers and a better performance from most of the platinum group, although platinum itself flagged slightly. This all fits with our opinion that the sector is still undervalued and should expect further gains over the next few weeks; the opinion that we’re looking at $1,000 gold in 2015 can still be heard but barring a major crash we don’t think it’s realistic right now.
The gold price didn’t rise as rapidly last week as it did the period before but it did keep heading upwards, gaining $13.80 to close at $1,294.10. Apart from a dip on Friday its progress was quite consistent, which agrees with the belief that it’s recovering from an unrealistically low price as well as reacting to a bad week for US equities.
Silver outperformed gold for the second week in a row, with a 51 cent rise leaving it just have a cent short of $18.30. That’s by far the best price we’ve seen in months and shows a strong rebound in confidence for silver, which has looked very weak over the past few months. It’s now much closer to where it should be in relation to gold and we expect this ratio to tighten slightly more over the next month. Right now silver looks like an excellent option for anyone thinking of making immediate profits and its longer-term prospects are increasingly bright as well, so we have no hesitation in adding a buy recommendation here.
In the second full week of January platinum did well, but its performance last week was less confident. It did still push upwards most of the week though, with a high of $1,285 on Thursday followed by a fall Friday that left it at $1,264. That’s only a dollar above its previous close, possibly showing some investor feeling that the price rises of the last few weeks don’t have a secure foundation. Demand seems healthy but not exceptional, so platinum may stay close to the current price for the next few weeks.
Meanwhile palladium, which nosedived spectacularly in the middle of the month, is slowly pushing its way back up again. Last week saw a hesitant performance with a few false starts, ending with the spot price up $18 at $773.
Rhodium has been unimpressive recently and kept that up for most of last week, with no movement through to Wednesday afternoon, but then a $30 surge took it up to $1,120. That’s right back where it was before it fell along with palladium on January 13. It’s hard to predict where it will go this week but a further slight climb looks like the best bet.
Last week saw the Dow Jones index weaken significantly, probably in reaction to the Eurozone’s ongoing economic problems and especially the sudden fall in the value of the Euro. That’s going to affect US exports to this large market, so it could be that the Dow’s long, steady rise is over for now. If that’s the case it could be good news for metal prices, so get in now while the market’s still low.
About the Author: Clint Stelfox
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. 
