Metals Minute 179: Platinum Opportunities
The metals took a hit today, in what I consider an overreaction to comments made by Federal Reserve Chairman Jerome Powell. Gold is off 1% this week to $1,822, silver is down 5% to $20.24, platinum is off 2% to $953, and palladium is down 4% to $1,412.
From a year ago today, gold is down 11%, silver is down 23%, platinum is 18% lower, and palladium is down 56%. Keep in mind, the Russia-Ukraine conflict was beginning in earnest a year ago, which impacted metals prices to the upside.
Fed Chairman Powell indicated that they will continue to target a 2% inflation level and expect to continue to raise interest rates to do so. The knee-jerk reaction to the news saw gold pushed to near-support levels and the lowest point so far in 2023. The commitment to slow inflation will likely cause a recession if we are not already in one. Rising prices combined with a slowing economy is the classic definition of stagflation, which has historically been extremely beneficial for gold and silver.
We also see positive developments for platinum, as increased demand (24%) is unmet by increased supply (3%) in 2023.