Monday Metal Markets News (24 June 2024) – Gold and Platinum in the Green, Palladium Makes Major Gains

 

Precious Metal Market News (24 June 2024) | Gold, Platinum Gain Modestly, Palladium Secures One-Month High

Gold ($+$14.22) and platinum (+$13.25)  prices start today in the green, while silver (+$.08) makes minimal headway below the $30 line. Gold and silver dipped last week after promising Purchasing Managers’ Index (PMI) data stifled investor hopes for an early interest rate cut from the Federal Reserve. Platinum continues its steady climb, jumping above the $1,000 resistance level for the first time since June 6th. 

The biggest metal price movement today comes from outside the three biggest markets. Palladium (+$47.95) gained nearly $60 on the day, hitting a two-month high of over $1,034 in the early hours of this morning. The precious metal is primarily used to produce catalytic converters, and experts claim that money managers are dialing back their bearish approach to the overly supplied palladium market. 

For now, investors continue to eye the Federal Reserve’s July 31st meeting for more cues on where interest rates – and precious metal markets – may be heading. 

Gold, Silver, and Platinum Log Modest Gains | Gold and Silver News (24 June 2024)

The big three precious metals all logged modest gains early this morning. Gold is up $14.22, well above the $2,300 support level established bulls have been fighting to maintain since June 10th. Like silver and platinum, the metal took a dive last week after June 21’s Purchasing Manager’s Index report squashed investor hopes for a rate cut in the near future. 

Silver also saw green this morning jumping just a few cents on market open. For silver bulls, establishing a solid support above the $30 level is a near-term goal. The precious metal spent only one day above this key line, briefly cresting over $30 last Thursday before Friday’s dip. For now, $30 seems to be a pivot point for silver. Securing the $30 support would be vital for the silver market, which is still propped up by record-high supply deficit projections. 

Global silver deficit to rise in 2024 due to higher demand, lower supply. #silverhttps://t.co/cioIuz4UEY

— MINING.COM (@mining) April 17, 2024

Platinum bulls are fighting their own battle over a key psychological support/resistance line. The metal jumped $13.26 this morning, leaving it just above the $1,000 line – for now. Platinum group metals have performed exceptionally so far in Q3, with both platinum and palladium logging gains during bearish price movements in the gold and silver markets. 

This year, federal interest rate bets have played a considerable role in price-action across all precious metal markets. Expect volatility in all three major metal markets as the Fed’s next meeting draws nearer. 

Palladium Price News | Will 2024 Be a Breakout Year For Platinum Group Metals? 

Palladium (+$47.95) logged the biggest gains this morning, jumping nearly $48 and settling above the $1,000 line by midday. The metal’s performance comes on the heels of distressing news from the automotive sector, where it is projected to take a structural hit as electric vehicle demand continues to climb. Despite the relative demand shortfall, today marks an entire week of consecutive gains for palladium. 

Palladium’s better-than-expected performance may have a lot to do with an ongoing short squeeze, reports a trader quoted on Mining.com: 

With the combination of money managers holding record short position in palladium futures, severe backwardation in the EFP market over the last days and sizable ETF allocation over the last month that results in withdrawal of the metal from the market, we are setting up for the possibility of an old fashioned short squeeze.”

It also seems that the metal is decoupled from the other big precious metals on the market. Palladium also gained considerably last Friday as gold and silver floundered. Historically, the exceptional industrial demand of platinum group metals has helped keep prices high during bleak precious metal markets. 

Clearly, the Fed’s next meeting will play a role in determining palladium’s fate. What remains to be seen is how the electric vehicle revolution will manifest within a market that has thrived in the past few months.