Strategists at Capital Economics proceed to count on the vaccine rollout to allow economies to re-open later this 12 months, which ought to bolster riskier belongings and weigh additional on the worth of gold. What’s extra, the palladium value surged in March, and it’ll proceed to outperform the worth of platinum over the following few years.
March was a blended month for treasured metals costs
“The biggest transfer was within the value of palladium, which surged by 14% after Nornickel revised down its 2021 PGM manufacturing steerage by 15-20%. We expect that the worth of palladium will outperform the worth of platinum over the following few years.”
“The worth of gold held regular, reflecting actions in US actual yields. Gold has tracked long-dated actual Treasury yields in latest months, whereas the connection with short-dated actual yields has damaged down. We expect that long-dated actual yields will rise a bit additional, placing the gold value underneath extra strain.”
“The worth of silver fell by round 6%. Consequently, the gold/silver ratio edged up above its long-term common. We count on the worth of silver to proceed to say no over the remainder of the 12 months as industrial metals costs drop again, serving to to push up the gold/silver value ratio additional.”