Investors seek protection in precious metals

According to the World Gold Council, gold ETFs recorded the highest inflow in a long time, namely 226.5 tons of gold in the first three months of the current year. The trade war sparked by the US president was a major trigger for this. Gold ETFs already recorded inflows in 2024, albeit rather modest ones. Prior to that, there had been outflows for three years. The gold price is therefore benefiting from "America First". Political uncertainties simply result in higher gold prices. The US is increasingly focusing inwards, which could lead to further de-dollarization tendencies. This in turn would strengthen the gold price.

First the price of the precious metal rose to a new record high after the tariff announcements, then it fell again. This is not surprising, as gold usually falls in price due to high risk aversion. However, the losses are usually short-lived. This is because opinion has now also changed with regard to interest rate cuts by the Fed. Interest rate cuts of 100 basis points are now expected by the end of the year.

The price of platinum and palladium is likely to be determined by how strong the headwinds are for the automotive industry. These metals are used in catalytic converters. Global economic developments are therefore decisive here. A decline in demand in the automotive industry would hinder higher platinum and palladium prices and cause fluctuations. Palladium is used in petrol cars, while platinum is also used in the chemical industry and the jewelry sector.

The Sibanye-Stillwater Group - https://www.commodity-tv.com/ondemand/companies/profil/sibanye-stillwater-ltd/ - successfully produces platinum as well as palladium and gold in South Africa and the USA.

Osisko Development - https://www.commodity-tv.com/ondemand/companies/profil/osisko-development-corp/- has gold in the Cariboo (Canada), San Antonio (Mexico) and Tintic (USA) projects.

Current company information and press releases from Osisko Development (- https://www.resource-capital.ch/en/companies/osisko-development-corp/ -) and Sibanye-Stillwater (- https://www.resource-capital.ch/en/companies/sibanye-stillwater-ltd/ -).

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

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