Precious metals rise on inflation, copper at one-month high
11:54, 25 November 2021
Precious metals edged higher Thursday and showed signs of bottoming out after five straight sessions of losses, as minutes from the US Federal Reserve revealed that more board members are now increasingly concerned about the outlook for inflation.
Gold traded at $1,791 per ounce (oz) by 12:00 GMT (+0.1% on the day), while silver was up by 0.3% to $23.61 per troy ounce (ozt).
Platinum rebounded to $998/oz (+2.6%), after falling as much as $957 yesterday, while palladium ticked up to $1,878/oz (+2.2%), after hitting $1,833 yesterday.
Industrial metals continue to rally on stronger than expected economic data in the US and supply-demand tightness. Copper gains 0.4% to $4.5 per pound, the highest level in a month.
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Metal Commodities Performance Heatmap – 25 November 2021
Metal Commodities Performance Heatmap as of 25 November 2021, 12:00 GMT – Credit: Capital.comGold
As of writing, spot gold was last at $1,791 per ounce, up 0.1%.
Gold posted five straight sessions of losses amid rising market expectations on a faster pace of monetary tightening next year.
The US dollar (DXY) is trading close to its year-to-date high (96.67) while the yield on the US 10-year Treasury reached to 1.65%.
In terms of performance, gold prices are 4% down since last week and almost 5.7% lower year-to-date.
Spot gold is now trading in line with its 50-day simple moving average (SMA) and 8.6% below its 12-month highs ($1,959).
Gold technical levels:
- 52-week high: $1,959
- 52-week low: $1,678
- 50-day moving average (1-day chart): $1,790
- 200-day moving average (1-day chart): $1,791
- 14-day relative strength index (RSI) (1-day chart): 42.8
Silver
Spot silver traded at $23.64/ozt, down 0.75% on the day.
Silver depreciated more than 10% year-to-date, and the precious metal is down 5.7% from a week ago.
Spot silver is now trading around its 50-day SMA and still 21% below its 52-week highs ($29.89)
Silver technical levels:
- 52-week high: $29.89
- 52-week low: $21.44
- 50-day moving average (1-day chart): $23.54
- 200-day moving average (1-day chart): $25.26
- 14-day relative strength index (RSI) (1-day chart): 42.39
Chart of the day: Copper is now outperforming precious metals in November
Month-to-date performance of Gold, Silver, Platinum and Copper – Credit: KoyfinCopper
Copper was last at $4.50 per pound, up 0.5% on the day.
Yesterday, stronger than expected economic data in the US supported market sentiment on industrial metals. Initial weekly US unemployment claims fell to the lowest since November 1969.
This week, a group of residents of Chumbivilcas, a region in Peru's southernmost province, blocked a critical route used by the Las Bambas copper mine and raised concerns about possible copper supply shortages. Copper prices gained also from easing signals from the Chinese authorities, which may boost the metal's demand picture.
In terms of performance, copper is now 3.5% up from the previous week and maintains on of the highest year-to-date returns among metals (+27%).
Spot copper is now trading 3% above its 50-day SMA, but still 8% below its 12-month highs ($4.90).
Copper technical levels:
- 52-week high: $4.90
- 52-week low: $3.30
- 50-day moving average (1-day chart): $4.37
- 200-day moving average (1-day chart): $4.33
- 14-day relative strength index (RSI) (1-day chart): 54.82
Platinum
Platinum was trading at $998/oz by 12:30 GMT, up 2.5% on the day.
Platinum’s value lowered 6.7% from a month ago and has dipped 8.2% since the beginning of the year.
Platinum is now trading 3.8% below its 50-day SMA and 25% below its 12-month high ($1,337).
Platinum technical levels:
- 52-week high: $1,337
- 52-week low: $901
- 50-day moving average (1-day chart): $1,037
- 200-day moving average (1-day chart): $1,020
- 14-day relative strength index (RSI) (1-day chart): 26.26
Palladium
Palladium was 2.2% higher to $1,878/oz.
Palladium was one of the worst performers in the week among metals (-13.3%) and its value has decreased by 24.5% year-to-date.
Palladium is now trading 6.4% below its 50-day SMA and 37.8% below its 12-month high ($3,017).
Palladium technical levels:
- 52-week high: $3,017
- 52-week low: $1,837
- 50-day moving average (1-day chart): $2,007
- 200-day moving average (1-day chart): $2,475
- 14-day relative strength index (RSI) (1-day chart): 33.72