Silver, Platinum and Palladium prices are falling – Commerzbank

The strong US Dollar (USD) put pressure not only on Gold but also on the prices of other precious metals. Silver fell by more than 5% to $31 per troy ounce at times. Platinum slid to $970 per troy ounce and Palladium to $1,010 per troy ounce, Commerzbank’s commodity analyst Carsten Fritsch notes.

USD puts pressure on precious metals

“The prices of these precious metals, which are mainly used in industry, had risen due to the brightening economic outlook in China. Under Trump, new tariffs could impede foreign trade and thus weigh on the growth and demand for these three precious metals. Since Silver plays an important role in the decarbonisation of the economy, a slowdown of this process under Trump could provide less tailwind.”

“Platinum and Palladium, on the other hand, would benefit from this, as they are used in catalytic converters for cars with internal combustion engines. At least in the US, no significant move away from the combustion engine is expected in the coming years. In the case of Palladium, strong inflows into ETFs have been observed since the beginning of October.”

“These have so far totalled 178,000 ounces. This means that 278,000 ounces have already flowed into the Palladium ETFs tracked by Bloomberg since the beginning of the year. This could indicate a change in sentiment for Palladium.”