– Gold traded between $1634 and $1563, ended barely lower at $1617.50, physical squeeze in NY easing, stocks up 2 Mio oz.
– Silver ranged between $14.54 from $13.80, ended down 0.55% at $14.39, gold/silver ratio steady at 112:1
– Platinum posted high of $747 on Force Majeure news from South Africa, fell back to $703, ended down 2.70% at $721
– Palladium surged 8% to high of $2447 on South Africa news, reversed gains back to $2110, ended down 3.57% at $2189
Gold started the week with a sharp move to the upside amid growing concerns over the global economic impact of Covid-19 to
reach an early of $1634 in early trading on Monday, however this early strength quickly faded with the price slumping back to a
low of $1563 on Tuesday in the face of a stronger USD and reports that Russia would suspend its gold buying operations and
allow international sales. The weakest US manufacturing data since 2009, another massive increase in US weekly jobless claims,
and awful US jobs data released on Friday (March payrolls fell by 701,000, unemployment rose from 3.6 to 4.4%) combined to
spark a rally back to $1625 on Friday before gold eased into the close to end another volatile week barely lower at $1616.50 bid.
News that gold held in the CME’s New York vaults had increased by 2 Mio ounces or 62 tonnes last week should help to stabilise
global physical markets as will news that Pamp in Switzerland will resumes operations at 50% capacity. Looking ahead the way
the relatively tight range for gold prices after two manic days at the start of the week suggests that we have entered a trading
range phase with the boundaries set by technical support from the 50 day moving average pegged at $1593 and a band of
resistance between $1625 and $1640 with a ‘play the range’ approached likely to be adopted by traders.
After the outrageous price volatility set by silver over the last month that had seen the price slump by 38% from $18.93 to $11.65,
then recover by 26%, Silver had a relatively narrow trading range last week with the price touching an early high of $14.54 on
Monday followed by a dip to a low of $13.80 on Wednesday before recovering the end with a modest 8 cents or 0.55% loss at
$14.39 bid. We also saw the release of the latest World Silver Survey that showed silver being in a supply deficit for the third year
in a row, and this should give some comfort to silver bull’s and reinforce the prevailing view that the industrial precious metal
looks ‘cheap’ in its own right and on the ratio versus gold that remains close to historic highs around 112:1.
Platinum had a strong start to the week with the price rising to an early high of $747 on news of Force Majeure declared by the
leading producers in South Africa due to the three week lockdown in the world’s leading platinum producing country, however
this early rally quickly faded as the impact of Covid-19 on global demand from the auto catalyst sector prompted trade and
investor selling. The noble metal reached a low point of $703 on Wednesday before recovering to end in mid range at $721 bid,
representing a loss of $20 or 2.70% on the week. Despite conflicting news last week the trading range was sharply reduced
compared to the action seen over the last month and, as with gold and silver, we could be about to enter a trading rather than
trending range type of market with technical boundaries set by support at $650 and resistance at $750.
Palladium surged by almost 8% from the previous Friday’s close to a high of $2447 on Tuesday in reaction to the Force Majeure
news from the South African producers but then proceeded to give up these early gains plus a bit more as the price fell back to
post a low of $2110 on Friday before ending the week down $81 or 3.57% at $2189 bid. While it is difficult to predict the price
directions at any time but especially in the current crisis conditions, it looks as though palladium could also be set for a period of
range trading with the technical boundaries set by the 100 day moving average pegged at $2160 and the 50 day MA located at
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