Metals Market Update – Precious Metal Price News (28 May 2024)

 

Metals Market Update – Precious Metal Price News (28 May 2024)

Following a lackluster end to last week, precious metal markets seem to be recovering today, May 28. Gold, silver, and platinum are all in the green, with platinum and silver seeing the greatest price increases as the United States Dollar continues to slip. Friday’s upcoming Personal Consumption Expenditures (PCE) price index should provide key insights into the state of the U.S. economy – and the outlook of precious metals markets. 

Last week, gold prices jumped after the death of Iran’s President signaled renewed uncertainty in the Middle East. Geopolitical instability doesn’t seem to be a major driver behind the latest gold, silver, and platinum price movements. Instead, investors are focused on new PCE data, which will be released on Friday (May 31). The PCE index is the core metric used by the Federal Reserve to track inflation rates in the United States. 

As the Fed prepares for its June 11 meeting, Friday’s PCE data will play a key role as the board decides whether or not to cut interest rates. Since lower interest rates tend to lead to higher precious metal prices, expect speculation to take center-stage in gold, silver, and platinum markets leading up to the Fed’s next meeting. 

On this page, we are taking a closer look at the lates precious metal price news this week. 

Gold Recovers In Anticipation of Fresh Inflation Data

Gold soared to new heights last week following the death of Ebrahim Raisi, former President of Iran. The yellowish precious metal also benefited from a weakening United States Dollar and promising April inflation data. Prices for the precious metal dropped starting on May 21, ending the week down nearly $100 from Monday’s fresh high before settling at around $2,334 last Friday. 

The beginning of this week was characterized by a moderate recovery in the gold markets. As of this morning, gold is trading at over $2,360 per troy ounce. This time, gold’s price run is largely attributable to speculation surrounding PCE index data, which will become public starting this Friday. Favorable inflation data could motivate the Federal Reserve to make good on its promises for decreased interest rates, which could send gold even higher. 

Gold Price Prediction (May 28, 2024): Will PCE Data Lead To Gold Breakout? 

Wall Street experts speculate that Friday’s PCE data will show promising progress on curtailing U.S. inflation rates. Until the data goes live, expect speculation to drive most of gold’s price-action. Other precious metals should move in-tandem with gold as investors speculate on the impact that Friday’s PCE index will have on the country’s interest rate prospects. 

If PCE data indeed shows optimistic progress, expect a significant breakout for gold above the $2,400 psychological level. Following the next PCE price index data, investors will turn to the Federal Reserve’s June 11 meeting to see if inflation has calmed enough to justify rate cuts from the Fed. 

Silver Holds Steady at Decade-Long High Above $32

As of this morning, silver continues to ride a decade-long high. The metal started the month trading at $26.64/oz and appreciated consistently until Tuesday of last week, when prices dropped dangerously close to the newly established $30 support line. 

The beginning of this week saw a modest recovery, as silver now once again trades above $32 per troy ounce. Silver prices continue to move in tandem with gold as investors look forward to Friday’s fresh PCE price index data. High silver volatility continues to characterize the market. 

The War In The #Gold & #Silver Markets Continues To Rage

Alasdair Macleod: “This pullback in prices might provide the best opportunity to buy gold and silver before China’s continuing demand drives them far higher”https://t.co/HybLlfOGQV pic.twitter.com/t9dgb1Mpte

— Silver Gold News (@SilverGold_News) May 24, 2024

Silver Price Forecast (5/28/2024): Where Are Silver Prices Heading? 

We expect sustained volatility in the silver market in the lead-up to Friday’s PCE report. Favorable data should raise prices across all precious metal markets – including silver. Of course, the impact of promising PCE data will depend more on the Fed’s interpretation of the numbers than our own. 

When the Federal Reserve meets in June, news of interest rate cuts will send gold, silver, and platinum into the green. Lackluster news from the Fed will likely chill silver prices – although speculation leading up to the July Federal Reserve meeting will likely lead to more volatility and higher metal prices. 

For the time being, silver is likely to hold steady above $31 until PCE data signals one way or the other. 

Platinum Recovers Modestly, But Market Volatility Remains High 

Platinum remains up from the beginning of the year but down from its mid-May high of $1,086.40. As of this morning, platinum prices have settled at just over $1,075 per troy ounce. Although platinum prices seem to be moving in the same direction as the other two precious metals, existing questions about supply and demand for the metal may throw a curveball into the market in the coming months. 

Last Monday, we addressed rumors about platinum supply shortages. Because platinum prices are extremely demand-dependent, shortages should have a significant long-term impact on the metal’s price-action. Adding to the confusion is palladium, another platinum group metal which can be used interchangeably with platinum to create catalytic converters.  

In other words, platinum price movements are usually dependent on more than the basic market speculation driving gold and silver’s recent bull runs. 

Platinum Price Prediction (5/28/2024): Will Supply Deficits Be Enough to Drive Platinum Bull Run? 

Analysts predict that platinum will end the year up from its 2023 average of $945 per ounce. In the short term, platinum seems to be benefiting from the same speculation driving other core precious metals. With fresh PCE data coming Friday and another Federal Reserve meeting set for June, it should come as no surprise that speculation drove gold, silver, and platinum to modest recoveries from last week’s faltering prices. 

Short-term analyses show that platinum has established a strong support at $1,015 to bounce back above $1,075 at the beginning of this week. There is no doubt that favorable inflation data paired with a weakened United States Dollar should be a good sign for platinum bulls. Lukewarm signals from Friday’s PCE data could drive all three big precious metals down, although platinum’s ongoing supply deficit woes may save it from the worst of the bearish damage. 

Precious Metal Market News and Analysis – 28 May 2024

Mixed signals from the Federal Reserve regarding interest rates continue to be the biggest driving factor behind precious metal prices in 2024. In the gold and silver markets, prices are up as investors brace for news from the PCE index report, which will become public Friday (May 31). Since the PCE index is the core metric used by the Federal Reserve to assess U.S. inflation, promising PCE data would revitalize investor faith that lower interest rates are coming sooner rather than later. 

Fed Chair Jerome Powell has dialed back public expectations for rate cuts in 2024, but news of easing inflation rates last month sent gold and silver prices back up amid renewed speculation that lower rates may be on the docket as early as September. USA Today reports on Powell’s latest lukewarm comments regarding 2024’s rate cut prospects: 

We’ll need to be patient and let restrictive policy do its work […] It may be that high interest rates take longer than expected to do its work and bring inflation down.

“We’ll need to be patient and let restrictive policy do its work,” Powell said during a session at a Foreign Bankers Association meeting in Amsterdam. “It may be that (high interest rates) take longer than expected to do its work and bring inflation down.”

For gold and silver, expect speculation re: interest rates to continue to drive prices up before concrete data becomes available. 

Platinum prices are tricky to predict. Despite evidence of sustained supply deficits in both 2023 and 2024, the precious metal’s price-action has been volatile this year. While platinum prices will certainly react to Friday’s PCE index and, of course, the Fed’s ever-changing position on both the strength of the U.S. economy and the likelihood of interest rate cuts, the metal is still bogged down by the increasing dominance of electric vehicles (EVs). 

Overall, expect the biggest movements in the precious metal markets to happen later this week following the release of PCE data.