Monday Metal Movements | Gold, Silver, and Platinum Price Analysis (13 May 2024)

Posted - May 13, 2024
precious metal price analysis May 13 2024

At a Glance: 

    • Gold prices dipped Monday morning as investors eye inflation data coming later this week. 
    • Silver remains steady at just over $28.30/oz, with fluctuations expected throughout the week. 
    • Platinum is up nearly 1.5% today, jumping above palladium prices early Monday morning. 

 

Monday Metal Movements | Bullion Market Price Analysis (13 May 2024) 

Gold started the week with a modest correction, dropping over $20 early this morning. It seems that investors are pulling back from the metal in anticipation of new U.S. inflation data. The next Consumer Price Index (CPI) report is set for release on Wednesday, May 15

Promising inflationary data could go either way for gold bulls. On one hand, a recovering United States Dollar could draw investors away from metal markets and toward traditionally correlated assets. Alternatively, the Federal Reserve may use slowing inflation data to justify interest rate cuts – which could lead to higher gold prices. 

Silver saw modest gains this morning, and experts anticipate sideways movement above the metal’s existing $27.90 support line. Like gold, silver’s prospects depend heavily on Wednesday’s CPI data. 

The biggest winner this week seems to be platinum. Platinum began the week of May 13th up 1.48%, jumping above sister metal palladium in the early hours of Monday morning. Investors can expect the most volatility out of the platinum market, which is now facing its worst supply shortage in decades

Platinum Approaches Price Parity With Palladium 

The biggest precious metal story this week comes from the platinum market. This morning, platinum jumped nearly 1.5%, toppling palladium’s thin price advantage. Historically, platinum and palladium have been used interchangeably in the production of catalytic converters, which makes up the lion’s share of industrial demand for both metals. 

Since the two metals are so close in price, expect consistent demand for both until the more economical option becomes clear. Strengthening bulls’ case for a platinum price run is the unprecedented supply deficit facing the market. With demand holding steady amid a decades-high supply shortage, platinum could be a metal to watch in the next few months. 

Gold Dips As Investors Eye Inflation Data

Platinum was the biggest market-mover this weekend, but gold is still the metal on every investor’s mind. The metal did not fare as well as silver or platinum, dropping nearly 1% over the weekend. This price correction comes just one week after gold smashed another recent high. 

Gold’s most recent dip signals that investors are betting on the strength of Wednesday’s CPI data. Gold could be in for a volatile couple of weeks in the wake of upcoming inflationary data.

Investor speculation may play a larger role in gold’s price-action next week than the data itself. A modest drop in inflation rates could drive investors to more traditional assets, such as stocks and bonds. Bad inflation news would have a similar effect because of gold’s role as an inflation hedge

The most volatile (and promising) climate for gold will likely occur if inflation data is exceptionally optimistic. The Federal Reserve has reiterated its intent to cut interest rates if inflation begins moving in the right direction. Promising CPI data could revitalize public faith that easing interest rates are coming in the near future – which would be great for gold

Silver Holds Steady Over $28/oz

Silver saw only modest gains this morning. The metal is still up 18.47% so far this year and holds steady above the $28 support line. Like gold, silver’s big price-action will likely come after Wednesday’s CPI data goes live. As a traditionally volatile metal, silver is likely to move up, down, and sideways as investors square their bets with inflation data in mind. 

Monday Metal Movements | Gold, Silver, and Platinum Price Analysis (13 May 2024)
Silver Held Above its New $28 Support Line This Weekend

The good news for stackers: silver’s support held strong and shows no sign of slowing in the near future. 

May 13 Precious Metal Forecast: Wait For Inflation Data Signals 

For both gold and silver, investor speculation should drive substantial volatility in either direction after CPI data goes live on Wednesday. Any evidence that might justify decreased interest rates from the Fed will serve as fodder for bulls as metal markets react. 

For platinum, expect both short and long-term gains. A combination of price parity with palladium and a record platinum shortage means the metal’s excellent performance is probably here to stay. 

Right now, all investor eyes are on CPI data. Inflation data should shed light on whether or not lower interest rates are coming in the near future – and the rabid investor speculation that characterized the last few months should remain a market fixture late into 2024. 

About The Author

Michael Roets is a writer and journalist for Hero Bullion. His work explores precious metals news, guides, and commentary.