Hello and welcome to our market week preview, where we take a look at the economic data, market news, and headlines likely to have the biggest impact on pricing and market momentum for gold, silver, and platinum, as well as key correlated assets.

Gold Market Update

Over the last several trading days, gold prices have continued to prove resilient, even if the yellow metal appears to have very limited upside as a result of the current monetary policy environment. Spot prices have dipped as low as $4080/oz but have found reliable support to lift prices back above $4100. At the start of what may be a relatively quiet week, prices are trading around $4145 following moderate selling pressure at the start of US market hours.

While the past 12 months of trading, against the backdrop of an expected and then actual pivot by the FOMC to raising interest rates, had conditioned us to brace for a gold sell-off in reaction to hotter-than-expected consumer and manufacturer cost inflation like we received last week, the actual reaction in gold markets was more indicative of concerns about higher inflation lasting longer.

This market view received an additional tailwind from remarks by Fed Chair Kevin Warsh at the IMF’s annual meeting, where the head of the US central bank was unwilling to prejudge the outcome of next week’s FOMC decision. In the resulting trading, the projected odds of a second consecutive rate hike dropped as low as 15%. Immediately after the September meeting, odds were considerably higher than 50%.

Silver & Platinum Markets Update

As is becoming standard procedure, even around more volatile developments like last week’s inflation data, silver and platinum markets continue to trade in a similar pattern to their yellow cousin. The sharp drop that hit silver prices in the middle of last week was potentially the steepest of the three, with silver spot prices falling to $55.71/oz on the 14th, the lowest closing mark of the year. Similar to gold, the white metal rebounded after the initial reaction to Wednesday’s CPI data and has since stabilized, trading between $57.20 and $57.80 in spot markets.

Platinum, meanwhile, continues to trade primarily in a band between $1640 and $1660/oz after losing what was expected to be reliable support at $1800 late in Q3. While both silver and platinum appear to follow the same general trend as gold prices, we continue to assume lower floors for both compared to gold. This is due to the strong dependence of several critical manufacturing processes on silver and platinum, which provides them with a consistent level of demand in both physical and futures markets that gold cannot claim.

And that’s how the precious metals basket is performing to begin the week. As always, we wish you all the best of luck in your markets in the coming days, and we’ll look forward to seeing you all back here next week for another metals market preview.