Silver leads precious metals recovery last week

San Francisco (Nov 27)  Silver led precious metals recovery last week. Led by the 6.2% weekly gain in silver , precious metals showed resilience in the face of yet new record high US equity prices and the strengthening US dollar.

Additional monetary stimulus from the PBOC helped to raise most boats. Gold ended the week above the much watched  $1,200  an ounce level. The resilience of gold has been impressive: despite the S&P 500 up 11.5% year-to-date (YTD) and the US dollar index up 10.4% YTD, gold ended the week unchanged YTD. In Euro currency terms, gold ended the week with a gain near 9.7%.

Gold forward rates (GOFO) remained negative out to six months, indicating an excess of physical demand.

 ETF Securities  maintains a positive outlook on all the precious metals, notably due to their favourable supply/demand trends and close proximity to their marginal costs of production.