Precious Metals Prices

Precious metal prices increased 2.2% month on month in January, following December’s 0.8% fall.

Precious metals prices rebounded in January from December, with gold—by far the world’s most-traded precious metal—leading the upturn and hitting an all-time high of USD 2,810 per troy ounce. Safe-haven demand surged as looming U.S. tariffs stoked market fears of trade wars. Moreover, the ECB, the Bank of Canada and the Riksbank cut rates further, making gold a relatively more attractive investment. Still, the USD dollar index appreciated and U.S. treasury bill yields rose in January vs December, tempering the price rally. Looking at individual metals, supply concerns applied further upward pressure on prices for silver and palladium as President Trump threatened to increase trade barriers on the metals’ top producers. That said, the increase in palladium prices was limited by weaker demand for internal combustion engine vehicles, which also dented the rise in prices seen for platinum.