Metals Minute 167: Lower but Higher

All the metals are lower since last night but higher since last week, higher since a year ago, and moving higher as I type.

Since last week, gold is up 1.2% to $1,819, silver is up another 4.5% to $24.06, platinum is up 1% to $1,054, and palladium is 2.3% higher at $1,977.

Since a year ago today, gold is up 2.76%, silver is 9.5% higher, platinum is up 13.6%, and palladium has moved up 20.6% from this time last year.  

Sometimes it takes a while for things to move, and sometimes they begin to move more quickly.  We appear to be entering the “moving more quickly” stage of precious metals investing, with the metals firing on all four cylinders of late.

Later today we have the interest rate announcement from the Federal Reserve, in which the consensus opinion is that we should see a 0.50% increase in interest rates.  While the inflation numbers have come down slightly, they still exceed 7% - which is relatively high by any measurement.  

With interest rates still lower than the inflation rate - even after today, real interest rates are still negative.  This is an environment in which precious metals often thrive.