Metals Minute 173: "Gold Breaks New Record"
Gold is up 2% for the week to $1,945, with silver up a fraction to $23.97. Platinum is flat (-) at $1,073, and palladium is down 2% at $1,738 for the week.
From a year ago today, gold is up 5%, silver is up 1%, platinum is 4% higher, and palladium is down 40% after coming down from the scare induced by the Russia-Ukraine conflict removing palladium from the market. It turns out those fears were overblown, with less demand for palladium in the world economy.
Gold set a new record high price today in Japan when priced in Japanese currency. The current gold price exceeds the previous high last visited in April of 2022. Saxo Bank commodity strategist Ole Hansen believes gold may set a new record in US dollars this year as well, due to 3 potential reasons, outlined below.
- Geopolitical difficulties related to the conflict in Ukraine that support gold as a defensive asset.
- Increased deficit spending by governments worldwide due to a developing global recession. This often tends to lower currency values.
- Pressure to lower interest rates, making gold more attractive as an investment.
These sound like 3 good reasons to us as well !!