Platinum at 14-Year Low, All Precious Metals Tumble: What’s Next?



Gold tumbles again

After witnessing a rebound on Friday, June 29, precious metals fell again on Monday, July 2. Gold fell 0.88% to close at $1,242 per ounce. Gold has fallen 4% in the last month and 1.9% in the last five trading days. Gold has now broken the psychological support level of $1,250 and touched its lowest mark of $1,239.80. That’s the lowest for the last six-and-a-half months. Its RSI (relative strength index) level has dropped again to 22. It was the third consecutive weekly decline for gold.

Large speculators decreased their bullish net positions in gold futures, according to CFTC (Commodity Futures Trading Commission) data released on Friday. Speculative positions dropped sharply by 19,000 contracts for the second consecutive week.

Platinum at a 14-year low

Among the other three precious metals, platinum was hit the worst, falling 4% and slumping to its lowest mark in close to 14 years. Platinum closed at $818.50 per ounce on Monday. It’s now trading at a record discount from its sister metal palladium. Palladium was down 0.86% on Monday, trading at $947.30 per ounce. Silver was also down 1.6%, trading at $15.90.

Among the ETFs that have also been hit by the slump in metals are the iShares Silver Trust (SLV) and the iShares Gold Trust (IAU). They fell 1.6% and 1%, respectively, on Monday and fell 3% and 2%, respectively, over the last five days.

Precious metal mining companies that were hit the most on Monday were Alacer Gold (ASR), Sibanye Gold (SBGL), Agnico-Eagle Mines (AEM), and Randgold Resources (GOLD). They fell 4.3%, 1.7%, 1.4%, and 1.6%, respectively.

More From Market Realist