Palladium Market and Reading the Gold-Palladium Ratio
So far, palladium has been stronger than the other precious metals in 2017. It has seen a YTD (year-to-date) gain of 26.5%.
When reading the platinum market, it’s important to analyze the comparative performance of platinum and gold by using the gold-platinum ratio or spread.
Precious metals reversed some of their losses on Monday, July 17, 2017.
In addition to the slump in the dollar, which we discussed in our previous article, another factor that affects precious metals is expectations surrounding interest rate hikes.
On Monday, July 17, gold futures for August expiration closed at $1,233.7 an ounce after having touched the day’s high of $1,235.4 per ounce.
For now, it seems that money managers are moving away from gold holdings (GLD).
On July 12, the gold–silver spread was 76.4. This ratio indicates that it takes almost 76 ounces of silver to buy a single ounce of gold.
Unemployment claims came in at 247,000, slightly higher than the forecast 245,000.
Precious metals saw a down day on Thursday, July 13, 2017. Gold, silver, platinum, and palladium traded lower due to a renewed increase in bond yields.
The precious metal–based mining funds that rose on Wednesday, July 12, included the Sprott Gold Miners ETF (SGDM) and the iShares MSCI Global Gold Miners ETF (RING).
When the Federal Reserve chair, Janet Yellen, presented her testimony on July 12, she reiterated that further increases were likely warranted. This could be negative in the long run for precious metals.
Gold futures for August expiration touched a low of $1,209.6 an ounce and ended the day at $1,212.1 on Monday, July 10.
Frozen concentrated orange juice (or FCOJ-A) futures this week were trading broadly lower compared to the levels a week ago.
Prices for No. 2 cotton currently trading on the ICE (Intercontinental Exchange) are trading significantly lower than last week’s average.
As of July 11, 2017, cocoa futures trading in the United States and London were lower than the levels a week ago.
As of July 11, 2017, the near-month sugar futures for both the No. 11 and No. 5 contracts extended losses, continuing last week’s trend.
On July 11, 2017, coffee prices were broadly positive for both the Arabica variety traded in the United States and the Robusta variety traded in London.
Precious metals fell on July 7, 2017, due to stronger-than-expected US economic data, which increased the likelihood of an interest rate hike.
The Fed’s stance is increasingly getting hawkish, which is negative for precious metals. They’re putting a lot of emphasis on economic numbers.
Precious metals saw a down day on Friday, July 7, 2017, as the US dollar scaled higher after the better-than-expected economic numbers.