The costs of treasured metals fell once more final week. As soon as once more silver was the worst performer, with the value down by 1.5% to round $24.50 per ounce, whereas the value of palladium additionally fell by about 1.5%. Nonetheless, strategists at Capital Economics count on silver to proceed its downfall whereas palladium is about to renew its uptrend.
The principle occasion is the discharge of the Federal Reserve Minutes on Wednesday
“The discharge of the Fed Minutes on Wednesday ought to present some indication about how dedicated the FOMC is to conserving rates of interest at present lows. If the minutes deliver ahead market expectations of rates of interest hikes then the US greenback might strengthen, placing downward strain on commodity costs.”
“We count on the silver value to proceed to fall additional by the tip of the 12 months as funding demand declines and industrial demand eases.”
“We predict the latest palladium rally will resume earlier than lengthy because the deficit out there widens, taking the value to $2,700 per ounce by year-end.”
“We predict that the actual Treasury curve will proceed to steepen, which is prone to put extra downward strain on the value of gold.”