Another week of volatile but higher metals prices was on tap, with gold up 1% to $1,853, silver up 3/8% to $24.00, platinum up 4% to $1,064, and palladium 18% higher at $2,362.
For the 1-yr period, we have gold up a fraction, silver 6% lower, platinum down 4%, and palladium up 8/10% for the year.
There will be some short-term selling pressure on the monetary metals today, with options expiry on some gold contracts later today, as well as the normal tamp-down efforts that normally presage announcements from the Federal Reserve, also due later today.
But short-term price actions mean little when we consider the magnitude of the situation and the momentum building for precious metals. The current discussion about Federal Reserve interest rate policy is centered around whether they will hike rates four times or seven times. Either number will not move real interest rates out of the negative category compared to inflation.
The world's largest gold-backed ETF had the highest inflows of cash since the fund's inception in 2004, as the investment community moves towards the safety of precious metals.