In this May update, INN looks back at how precious metals fared for the month and what industry experts are saying about the sector.
In this video, the Investing News Network looks at the key events and developments that took place in the precious metals space during the month of May.
May was another month of ups and downs for the precious metals market, as political and economic factors pushed and pulled at metals prices.
Gold managed to climb over the US$1,300 per ounce level on May 13, when China responded to the US raising tariffs on Chinese goods with its own set of heightened tariffs on US products.
However, the metal could not sustain those numbers, as its safe haven demand wasn’t enough for investors; it also appeared that an interest rate cut was not in the cards. The yellow metal finished the month trading around US$1,280.
In terms of gold news, there was more merger and acquisition activity within the space, with St. Barbara (ASX:SBM,OTC Pink:STBMY) acquiring Atlantic Gold (TSXV:AGB,OTC Pink:SPVEF) in a US$536 million takeover, as well as rumours swirling that IAMGOLD (TSX:IMG,NYSE:IAG) is looking to sell.
There was big news out of Australia as the Victorian government proposed a 2.75 percent royalty on gold producers. The Minerals Council of Australia believes it will drive investment away from the area.
As for silver, the metal continued to lag in May, unable to reach US$16 per ounce or even US$15 levels during the month. The metal was given some support by ongoing trade war concerns between the US and China, but finished the month trading around US$14.45.
While platinum prices were relatively flat, both the World Platinum Investment Council and Metals Focus released reports stating that demand for the metal will increase before the end of the year. At the end of May, platinum was trading around US$790 per ounce.
As for palladium, it continues to be the highest trading precious metal, but has not come close to the records it set in March. At the end of the month, the metal was trading around US$1,325 per ounce.
In May, the Investing News Network also attended Mines and Money New York. The team spoke with industry leaders from companies such as Sprott (TSX:SII,OTC Pink:SPOXF), IAMGOLD, GoviEx Uranium (TSXV:GXU,OTCQB:GVXXF) and many more. You can find all of those interviews on the Mines and Money playlist on our YouTube channel.
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.