Metals Minute: Golden Opportunity

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Metals Minute: Golden Opportunity

January 27, 2021

For the week, Gold is down 1% to 1840, Silver is down 3% to 24.87, Platinum is down 4% to 1072, and Palladium is down 3% to 2353.

Since one year ago today, Gold is up 16%, Silver is up 37%, Platinum is up 4%, and Palladium is up 3%.

We have seen the recent weakness due to a temporarily strengthening Dollar, the aftermath of metals option expiry this week, and a stumbling global economy with the Federal Reserve meeting later today to discuss interest rates moving forward.

To put this in perspective, the stock market is down 2% so far just this morning. What I believe we will see from the Fed is a continued commitment to low-interest rate policy for the foreseeable future.

With many analysts expressing the view (mine included) that we may already be near the bottom for the metals for 2021, it seems the opportunity moving forward is for Gold and Silver, Platinum, and to a lesser degree, Palladium.

The stock market is likely at a near-term high, meaning that the metals also offer less risk right now.

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