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James St. John
According to Reuters, quotations of platinum rose above $1100 per troy ounce on June 24. This result is more than 8% higher than the value of the beginning of the week. Palladium rose a comparable 7.7% to $2654 an ounce. The platinum group metals largely recouped last week's losses. Gold and silver, meanwhile, remained flat at under $1800/oz and under $26/oz, respectively.
The collapse in the precious metals market occurred a week ago after the US Federal Reserve (Fed) meeting. Then it was announced that the key rate is expected to rise twice in 2023, although previously it was expected to remain unchanged until the end of 2023. Moreover, a third of those attending the meeting believe that an increase will take place as soon as next year. This led to precious metals quotations falling by 5-9% in one day and then falling back even further.
Experts attribute the current price recovery of platinum and palladium to the fact that their use in industry is significantly higher than that of gold and silver.
Price indexation is stimulated by the recovery of the global economy and, in particular, the automotive industry. Platinum and palladium are not only less sensitive to what kind of monetary policy market participants expect, but they also continue to be the beneficiaries of rising automotive demand around the world, which leads to an increase in demand for the metals used in automotive catalysts.
source: reuters.com
The collapse in the precious metals market occurred a week ago after the US Federal Reserve (Fed) meeting. Then it was announced that the key rate is expected to rise twice in 2023, although previously it was expected to remain unchanged until the end of 2023. Moreover, a third of those attending the meeting believe that an increase will take place as soon as next year. This led to precious metals quotations falling by 5-9% in one day and then falling back even further.
Experts attribute the current price recovery of platinum and palladium to the fact that their use in industry is significantly higher than that of gold and silver.
Price indexation is stimulated by the recovery of the global economy and, in particular, the automotive industry. Platinum and palladium are not only less sensitive to what kind of monetary policy market participants expect, but they also continue to be the beneficiaries of rising automotive demand around the world, which leads to an increase in demand for the metals used in automotive catalysts.
source: reuters.com
