Scaling precious metals

All four precious metals had an up day on Wednesday, December 27. Gold futures for January expiration rose 0.23% and closed at $1,287 per ounce. The liquidity among precious metals overall seems to have been lower due to year-end holiday celebrations.

Silver joined the rise in gold, climbing 0.89% and ending at $16.6 per ounce. Platinum futures were marginally higher, while spot prices dipped lower. Palladium rose 1.3%, winning among precious metals for the day as well as for the year.

Precious Metal Ups and Downs This Past December

Notably, there’s been a considerable surge in the physical demand for gold lately, mainly due to the approach of the Chinese New Year. This trend could continue until February.

Before and after Fed

If we look at the above chart, the first half of December was negative for gold and silver, while the other half was a period of revival. The Dember 13 Federal Reserve meeting was also key here, with noticeable differences before and after the Fed meeting on precious metals.

During the five days leading up to December 27, gold and silver rose 1.7% and 2.7%, respectively. Global tensions have meanwhile played a role in this rise, and geopolitical tensions stemming from US relations with North Korea have boosted occasional haven bids for gold and silver.

While all the four precious metals had an up day on December 27, mining companies Hecla Mining (HL), Yamana Gold (AUY), Agnico-Eagle Mines (AEM), and B2Gold (BTG) fell 2.7%, 1.3%, 0.15%, and 3.6%, respectively, for the day. The two most famous gold- and silver-based funds, the iShares Gold Trust (IAU) and the iShares Silver Trust (SLV), rose 2.2% and 3.4%, respectively, on a five-day-trailing basis as of December 27.

Continue to the next part of this series for a key look at the gold-platinum spread.

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