• Gold fell from $1899 to $1855 on more positive COVID-19 vaccine news, recovered to end down 0.98% at $1870
  • Silver plunged 6% from $25.07 to $23.66, then stabilized to end with a pared 2.23% loss at $24.10
  • Platinum rose 8% from a low $889 to reach $964, ended the week up 5.48% at $943, looks set to challenge $1000
  • Palladium traded in a relatively narrow 4% range between $2379 and $2274 before ending barely changed at $2327

Precious Metals Weekly Review and Outlook

Closing prices are bids| Data source Refinitiv / Netdania See disclaimer at end of the report

Weekly Price Review For The Week Ending 21-Nov-20 Report Date 22-Nov-20
OTC Spot Market
High Bid Low Offer Close WTD
Change $
WTD
Change %
YTD
Change %
Gold $1,899.00 $1,855.00 $1,870.50 -$18.50 -0.98% 23.30%
Silver $25.07 $23.66 $24.10 -$0.55 -2.23% 35.17%
Platinum $964.00 $889.00 $943.00 $49.00 5.48% -2.08%
Palladium $2,379.00 $2,274.00 $2,327.00 -$1.00 -0.04% 19.82%

 

Precious Metals Cross Rates
XAU
versus XAG
XAU
versus XPT
XAU
versus XPD
XPT
versus XPD
XAU
versus BRENT
XAU
versus $10Y TSY
Weekly Close 77.61 $927.50 ($456.50) ($1,384.00) 41.60 2,256.33
WTD Change % 1.28% -6.78% -3.99% 3.49% -8.79% -14.90%
YTD Change % -8.78% 67.42% 7.41% 41.37% 81.00% 175.33%
Gold Prices in Other Currencies
AUD EUR GBP INR RUB ZAR
Weekly Close 2,562.00 1,578.00 1,408.00 138,623 142,252 28,826.00
WTD Change % -1.63% -1.19% -1.95% -1.58% -2.39% -1.45%
YTD Change % 18.56% 16.61% 23.09% 28.07% 51.44% 35.79%

Gold had a solid start to the week rising $10 from the previous Friday’s close to post a high of $1899 in early Asian trade on Monday, however just when the yellow metal looked poised to break back above the psychologically important $1900 barrier news of another vaccine breakthrough in the battle against the COVID-19 pandemic was announced with drug maker Moderna claiming a 95% success rate in their late stage testing program. For the second week in a row this prompted a wave of long liquidation that drove gold sharply lower to reach $1875 but this 1% decline was much more shallow than the 5% collapse on the Pfizer news and gold quickly stabilised to bounce back to $1893 on Tuesday. The recovery was short lived with the market working its way lower to reach $1855 on Thursday before recovering to end another disappointing week down $18.50 or 0.98% at $1870.50.

Technically this latest set back for gold has generated a technical sell signal on the charts with the 50 day moving average moving below the 100 day MA and it is worth noting that there was significant ETF selling with a 1,7% decline in holdings worth $2.6 billion, however with the market in trading rather than trending mode support pegged at $1850 should contain further weakness although a clear break would bring the 200 day MA set at $1794 on to technical radar screens.

Silver also had a decent start on Monday with the industrial precious metal posting an early high of $25.07, up from the previous week’s close of $24.65, however the weakness in gold spilled over into silver with the price slumping by almost 6% to a low of $23.66 by Thursday amid reports of 7.5 Mio ounces of ETF liquidation as growing COVID-19 cases around the world cast a fresh shadow over the global economy and the outlook for industrial demand. A late rally on Friday saw silver pare its losses to end down 55 cents or 2.23% at $24.10 and in the middle of a well defined technical trading range bounded by support set at $23.25 and resistance located at $25.50.

Looking ahead to the coming week it will be interesting to see whether silver continues to track gold in its role as a cheap safe haven proxy or follows the direction of its industrial cousin copper, which will continue to be driven by the impact on the global economy of the COVID-19 pandemic.

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