Metals Minute 54: Inflation and Precious Metals
For the second week in a row, all the metals are up on inflation concerns. Gold is up 2.1% to $1,873, silver is up 3.9% to $25.24, platinum is up 6/10% to $1,076, and palladium is up 6.8% for the week to $2,201.
Since a year ago today, the results are mixed, with gold down a fraction, silver up 3%, platinum up 16%, and palladium down 5.5%.
We can expect some downward pressure on gold and silver between now and Tuesday when the December gold options expire. There are more open positions on COMEX to buy at $1,850 than to sell, which means fraudulent pressure will be applied to try and drive the price below that level before the options expire.
Another example of rigging precious metals prices was reported this week, as $50 million in fines were added to a previous judgment, bringing the new total to $152 million for rigging metals prices. Just another in a string of expensive judgments levied against investment banks manipulating gold and silver prices.
Despite this, we expect continued growth in gold, silver, and platinum prices between now and year end, as inflation rages and the economy slows.