Gold

For the first time since late August of 2018 palladium futures pricing has broken below its 50-day moving average. Palladium’s historical rise began on August 14th, 2018 after pricing bottomed to $815 per troy ounce. Within the next three months palladium pricing had breached $1,000 per ounce trading to a high of $1135 by October 23^rd of last year.

Considering that since the beginning of March when gold futures were trading at a low $1280 per ounce, gold has gained some real distance in value during the month. Even with today’s modest decline, gold futures basis the most active April contract is trading at $1315.70.

On Friday’s report I spoke about the fact that the major central banks have been quietly accumulating and adding to their gold reserves.

According to Forbes, beginning in 2010 the major central banks around the world began to become net purchasers of gold, rather than sellers of gold. According to their data in 2017 official sector activity rose 36% to 366 tons. Although the top 10 central banks with the largest gold reserves have remained mostly unchanged over the last few years.

Precious metals continue to react favorably as market participants and traders digest the most recent statement from the Federal Reserve which was released at the conclusion of yesterday’s FOMC meeting.