Precious Metals

Precious Metals Investing

Gold and silver both made gains this week, while copper continued downward. Oil maintained its climb toward $70 per barrel.

The gold price continued to climb this week against a weakened US dollar, putting it on course for a near 2-percent weekly gain.
As of 8:26 a.m. EST on Friday (January 26), gold was trading at $1,350.60 per ounce against the fragile dollar, which has slid half a percent against the euro. The yellow metal is now heading back toward the previous session’s 17-month peak.
With gold pushing against highs last seen in mid-2016, analysts such as Mitsubishi’s (TSE:8058) Jonathan Butler are confident that the yellow metal will only continue on its upward trajectory.


Butler told Reuters, “our medium-term outlook remains constructive on gold and we could well see gold at $1,400 this year if the dollar and real rate environment remains favourable.”
Silver also made gains this week, and was trading at $17.37 per ounce as of 8:44 a.m. EST on Friday. Reuters notes that silver touched its highest price in more than four months at $17.69 on Thursday (January 25). It was this week’s best-performing precious metal, climbing 2.8 percent from Friday’s close.
In a note, Julius Baer states, “[w]e remain neutral but lift our twelve-month price target to $17.50 per ounce due to signs of improving industrial demand.”
Rounding out the week in metals is copper, which was once again down slightly for the week, trading at $3.19 per pound as of 9:09 a.m. EST on Friday. While copper rallied earlier in the year due to enthusiasm for the electric vehicle revolution, it has been unable to keep the momentum.
According to a Reuters poll, supply problems, including strikes at copper mines and pollution shutdowns at aluminum smelters, will spur deeper shortages of the metals this year, but weaker Chinese demand may weigh on overcooked prices.
Meanwhile, oil prices were up this week, as investors are finding the energy source appealing against the weak dollar. Also backing oil’s climb are US crude stockpiles, which dropped further this week. Crude stockpiles fell for a 10th week, to their lowest level since 2015. As of of 9:21 a.m. EST on Friday, oil was trading at $65.65 per barrel.
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.

MARKETS

Markets
TSX20402.18+58.11
TSXV576.13-5.19
DOW34348.04+153.98
S&P 5004029.07+1.81
NASD11238.36-46.96
ASX7241.80+10.00

COMMODITIES

Commodities
Gold1749.98-5.37
Silver21.33-0.16
Copper3.63+0.01
Palladium1814.00-64.48
Platinum978.00-10.74
Oil78.26+0.32
Heating Oil3.28+0.01
Natural Gas7.24-0.07

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