Falling platinum prices rebounded ~2.48% on September 24, 2015, after losing close to 5.40% due to the Volkswagen scandal. However, platinum had a five-day trailing loss of 3.25%. It was trading close to $955 per ounce. Palladium was a strong performer. It extended the 5.69% rise on Wednesday, September 23. It rose 1.66% on Thursday. It settled at $656 per ounce. Palladium rose 9.60% on a five-day trailing basis. It recovered from its steep fall in July.
Volkswagen shares rebound
The rebound in the Volkswagen share price likely supported a positive return on palladium. It gained close to 6% on the Frankfurt Stock Exchange as the company announced that CEO Martin Winterkorn will step down after the company forged US car emissions tests. The rise in palladium’s price also had some backing from China. The country plans to accelerate the construction of electric car facilities.
Gold, silver, ETFs, and miners
Gold and silver prices have recovered due to the jitter present in the global markets. The ECB (European Central Bank) commented that it may take longer for inflation to move to the 2% target level than previously expected due to turmoil in China and weak oil prices. Gold and silver futures on COMEX rose ~2% and 2.30%. Gold and silver precious metals were trading at $1,153 and $15.13 per ounce, respectively, as of September 24.
Strengthening gold and silver prices also supported gold and silver-backed ETFs like the Global X Silver Miners ETF (SIL) and the iShares Gold Trust (IAU). Both of these ETFs rose ~7% and 2%, respectively. Mining companies that rose due to rising gold prices include Royal Gold (RGLD), Gold Fields (GFI), Newmont Mining (NEM), and Eldorado Gold (EGO). Together, these four stocks account for ~17.50% of the changes in the VanEck Vectors Gold Miners ETF (GDX).