Precious Metals Market News (26 June 2024) | Gold, Silver Slip, Platinum Logs Midweek Gains

 

Precious Metals Market News (26 June 2024): Gold and Silver Slip as Platinum Logs Strong Midweek Gains

Gold prices (-$19.63) slipped his morning, hovering close to the $2,300 support line at just over $2,302. Silver (-$.09) also fell over $.10 on the day, dipping below the $29 level.  New data from the United States Census showed fewer new home purchases in May than in April, and analysts say that this report may be behind falling precious metal prices. This new data combined with a strengthening United States Dollar this morning to undercut bulls’ efforts to stabilize either metal above key supports. 

Investors are now turning their attention to the next Federal Reserve meeting, which slated for July 30-31. After the Fed’s hawkish recent stance on interest rate cuts, expect significant price movement in gold and silver markets leading up that July meeting. Good news from the Fed could lead to a breakout for both gold and silver, which have moved closely together this quarter.

Platinum (+$31.24) is the only major precious metal market in the green this afternoon, jumping over $34 and breezing past the $1,000 resistance line. The $1,000 level has been a major obstacle for platinum bulls, and establishing it as a solid support is likely a prerequisite to a breakout performance for the industrial metal this quarter. 

Platinum Bulls Attempt to Stabilize Above $1,000 

Platinum prices are up this year by around 1.62%. Despite record demand for electric vehicles, the precious metal has continued to perform well in 2024. Analysts say that an ongoing supply deficit could be part of platinum’s recent performance, although the interchangeability of platinum and palladium in the automotive industry puts a hard limit on how high either metal can theoretically go. Platinum is also uniquely susceptible to legislated losses as governments move to support the growing EV sector, which threatens platinum’s main industrial application. 

Platinum News

Canada’s clean hydrogen investment tax credit becomes law, offering developers up to 40% tax rebates on project costshttps://t.co/CzBatD9Fgn

— bob coleman (@profitsplusid) June 26, 2024

Stability along the $1,000 line has been a major obstacle for platinum bulls this month. Platinum prices dipped to a monthly low of $951.68 on June 13, and the metal has struggled to establish a consistent support at $1,000. Structural obstacles, including increased EV demand and platinum stockpiles accumulated by automotive manufacturers have made the precious metal especially volatile this year. 

Platinum and palladium continue to fight for dominance within the $950-1,000 range. On Monday morning, palladium (+$47.95) logged major gains while platinum (+$13.25)  lagged behind. Midweek price-action has been kinder to platinum, and palladium dropped below the $1,000 line once again as its sister metal broke out this morning. 

Precious Metal Market Analysis (26 June 2024)

Gold bulls should be pushing to keep gold above that key $3,200 psychological support line. For silver, regaining ground above $29 is a short-term goal to keep the metal supported above $30 – which has been a struggle this month. Both metals are difficult to pin down at the moment, and volatility seems to be a fixture of the precious metals market in Q3 of 2024. Key economic reports coming in July include the CPI, PMI, and PCE. All three reports could give investors early insights into whether or not the Fed will walk back their recent hawkishness and make good on rate cut promises this year.

 Silver could break away from gold and make establish more bullish trends if the gold-silver ratio continues its climb. Right now, the gold-silver ratio hovers close to the 80:1 mark. Breaching 80:1 could be enough to convince investors to switch from gold to silver, at which point the metal’s strong fundamentals may play a larger role in its performance in late 2024. For now, the metals seem to move in tandem, and the GSR gives investors solid insight into whether or not silver is undervalued. 

Silver: July futures at $28.85/oz, roughly unchanged.
Gold/Silver Ratio: Just below 80 points.

Dollar Strength and Precious Metals 🌐
Gold and silver remain directionless amid a strong U.S. dollar, with investors awaiting the May PCE Index release on Friday.

— Trading.biz (@tradingbiz_biz) June 26, 2024

Platinum and palladium markets will likely be volatile in both the short and long term. Supply deficits aside, EV demand heading into the second half of 2024 poses a major structural obstacle for the industrially useful metals. Expect more movement from platinum once manufacturers exhaust their existing stockpiles amassed during the COVID-19 pandemic. Both platinum and palladium seem to be decoupled from gold’s performance, so it’s difficult to tell how these markets will react to more news from the Fed.