Metals Minute 157: Dollar Down, Gold Up

Monster week for most of the metals, with gold up 1.8% to $1,674, silver up 5.7% to $19.77, platinum up 4.7% to $957, and palladium the outlier, down 1.9% to $2,019.

For the year, palladium takes the prize flat, with gold down 7%, platinum down 8%, and silver off by 18%. Some good buys out there, even after the great week we’ve had.

We’ve been talking about the dollar, how it has been at historic highs internationally, and that it would be a good idea to purchase metals. Some of the strength we’ve seen in precious metals prices over the last week was due to declining dollar strength. It appears to be topping and preparing to return to earth.

Home prices went from a 3-month trend of +25.6% to -4.3% between July and August. This was before mortgage rates went over 7%, as they are today. We might be in for a longer downturn with real estate in some areas, with interest rates expected to rise further in the short term.

This is the season to be careful of economic window dressing before the election, which may mask underlying economic deterioration. The demand for physical gold and silver is justified, IMO.