Monday Precious Metals Market News (29 July 2024) | Gold and Silver Dip, Platinum Group Metals Gain

 

Monday Precious Metals Market News Update (29 July 2024) | Gold and Silver Struggle For Momentum

The gold market (-$9.79) opened with sideways movement this morning. Last Friday, gold prices recovered from a midweek slump after optimistic Personal Consumption Expenditures (PCE) data reaffirmed that inflation may be heading toward the Federal Reserve’s 2% target. Boosted bets for an early interest rate cut from the Fed drove the yellow metal closer to the $2,400 line by the end of the week. This morning, gold has etched just a bit further from the $2,400 level, which is an undeniable target for gold bulls hungry for a fresh all-time high. 

Silver (-$.40) continued to slide today, 29 July. The metal dropped from over $29 to under $28 beginning last Tuesday. Friday was a brief reprieve for silver bulls, but saw little recovery. This morning appears to be more bad news for silver bulls, with silver prices down nearly half a dollar as the metal struggles to reestablish support above the $28/oz line. 

Both metals continue to eye key potential supports. The target for gold is $2,400, a level the metal has only managed to jump a handful of times in 2024. The last time gold broke $2,400 was earlier this month when it reached a new all-time high. With this morning’s price-action, gold is within striking distance of $2,400. Establishing a solid support at that level would be a major win for gold bulls as they race to claim another historic high this year. 

📈 Latest Commodity Prices 📉
– Gold (XAU/USD): $2381.37 💰
– Silver (XAG/USD): $27.65 ✨
– Crude Oil (CL): $75.98 🛢️
– Brent Oil (BZ): $79.12 🛢️#oil #commodities #gold #silver
Source: https://t.co/LujBDbKdZC

— CommodityPriceAPI (@ApiCommodity) July 29, 2024

Silver finds itself in a more precarious spot. The precious metal is up over 17% on the year but now sits at a multi-month low. The last time silver ended a day below $28/oz was on May 8th, 2024. 

More upward mobility from gold could actually be good news for silver. The gold-silver ratio increased again at market open, climbing nearly 1:1 to a local high of 86.27:1. This year, a gold to silver ratio of 90:1 or more has proven untenable, with the ratio retreating each time it crests above that line. Investors can expect some degree of gold sell-off in favor of silver if the gold to silver ratio reaches above 90:1 in the next few weeks. 

Platinum News Today (29 July 2024) | Platinum Group Metals Shine as Gold, Silver Slump 

Platinum (+$20.46) saw green this morning, climbing nearly $20.50 as gold and silver floundered. This year, structural hits to demand in the automotive sector have hit platinum prices hard despite a record 2024 supply deficit. The bulk of industrial demand for platinum comes from the production of catalytic converters, and electric vehicles (EVs) do not use catalytic converters. Growth in the EV industry has been a catalyst for a struggling platinum market. 

Palladium (+$21.21) also logged decent gains at market open today, 29 July. The key test for platinum will happen at $1,000, a support which the metal has struggled to maintain all year. 

Palladium finds itself in a similar situation to platinum. Both metals are used interchangeably in the production of catalytic converters. Last month, the expected closure of a Montana palladium mine drove further volatility in the market, which suffers from the same structural demand woes as platinum. Small movement this morning helps make the case for a palladium recovery, but $1,000 remains a key challenge for palladium bulls.