Metals shine on inflation concerns, gold at 5-month highs
12:14, 16 November 2021
Metal prices strengthened Tuesday in European trading, with gold futures changing hands at $1,876/oz, up 0.5% for the day, and hitting new five-month highs.
A report on US consumer prices last week showed US consumer inflation in October increased at the fastest pace in 31 years, up 6.2% over the past 12 months, prompting a rally in precious metals as traders seek to protect themselves from fears of longer-than-expected pricing pressures.
Silver futures rose to $25.34/troy ounce, up 0.9% from the previous close and up 3% from a week ago.
Palladium was 0.7% higher to $2,173/ounce, after four straight sessions of gains, while platinum gained 1.1 % to $1,097/ounce.
Copper failed to rally as China’s real estate developer crisis worsens the demand outlook for the commodity.
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Metal Commodities Performance Heatmap – 16 November 2021
Metals performance as of 16 November 2021 (12:00 UTC) – Credit: Capital.comGold
As of writing, spot gold was last seen at $1,876 an ounce, up 0.55% from previous close.
Gold prices rose 2.75% over the past week on the US consumer inflation report.
Gold is trading at a five-month high and last week broke a key resistance level at $1,835/ounce that had been held since July 2021.
The 14-day RSI (Relative Strength Index) in the daily timeframe chart hovers around the overbought area (72.09).
Gold spot prices are now trading 5% above the 50-day moving average and 11.8% above 12-months lows.
Gold technical levels:
- 52-week high: $1,959
- 52-week low: $1,678
- 50-day moving aerage: $1,786
- 200-day moving average: $1,792
- 14-day Relative Strength Index (RSI): 72.09
Silver
As of writing, spot silver traded at $25.34 per troy ounce, up 0.7% on the day
The value of the silver has increased 8.1% over the past month, posting the best performance among metals.
52-week high stands at $29.89, or 18% above current spot prices, while the 200-day moving average seats 0.4% below spot.
Silver technical levels:
- 52-week high: $29.89
- 52-week low: $21.44
- 50-day moving average: $23.45
- 200-day moving average: $25.49
- 14-day RSI: 66.59
Chart of the day: precious metals shine as markets expect higher for longer inflation
Gold and silver correlation with market-based inflation expectations (US 10-year breakeven rate) – Credit: KoyfinCopper
Copper spot prices are trading at $4.40 per pound, unchanged from previous close.
Since the end of October, copper has been trading on a range between $4.28 and $4.46 per pound amid ongoing concerns over the liquidity crisis sweeping Chinese property developers and the government's efforts to remove speculators off the real estate market, which continue to weigh on the demand prospects for the commodity.
In 2021, copper has been the best performer among metal commodities, up about 25% year-to-date, but its price fell by 6.7% over the past month.
52-week high stands at $4.90, or 10.2% above current spot prices.
Copper technical levels:
- 52-week high: $4.90
- 52-week low: $3.18
- 50-day moving average: $4.37
- 200-day moving average: $4.31
- 14-day RSI: 49.49
Platinum
Platinum was last at $1,109 an ounce, up 1.1% for the day.
Platinum prices have risen 2.7% on the week and 6.4% over the past three months.
14-day relative strength index (RSI) in the daily timeframe chart has just entered into the overbought territory (70.13).
Platinum technical levels:
- 52-week high: $1,337
- 52-week low: $885
- 50-day moving average: $1,048
- 200-day moving average: $1,026
- 14-day RSI: 70.13
Palladium
Palladium was 0.8% higher to $2,173 an ounce in London midday trading.
Over the past week, palladium prices have risen by 7.1%, recording the best performance among metals. However, palladium prices are still 11.5% down year-to-date.
Palladium technical levels:
- 52-week high: $3,017
- 52-week low: $1,842
- 50-day moving average: $2,022
- 200-day moving average: $2,488
- 14-day RSI: 61.95