Metals Minute 75: Gold Price and Oil
Major European energy traders are looking for emergency cash to keep the lights on while precious metals prices take a short breather into the Federal Reserve interest rate announcements later today.
For the week, we have gold down 3% to $1,930, silver down 4% to $25.07, platinum down 8% to $1,030, and palladium off of a record high, down 18% to $2,489.
Looking out one year, we have gold up 11%, silver down 3%, platinum off 16%, and palladium down 1%.
I view the current prices as temporary weakness in an overall upward trend, which provides a good buying opportunity if you can take advantage.
In related developments, Saudi Arabia is in discussions with China to sell oil in contracts denominated in Yuan (Chinese currency). China has become a major purchaser of its oil.
Oil traders in the Persian Gulf claim that Iran is currently selling 3 million barrels per day. Sanctioned oil is sold at tremendous discounts and relabeled or disguised in ships of various origins when transferred at sea to vessels with transponders turned off.
The oil cargo GPS tracking service “Tanker Trackers” indicated that yesterday, $100M of Russian Crude was diverted from the EU and is heading to the USA. More info in today’s video.