Precious metal prices rose 5.4% month on month in April, following March’s 2.1% increase.
April’s uptick was likely driven in part by strong safe-haven demand, amid concerns regarding the health of the U.S. banking sector, the political standoff over the U.S. debt ceiling and potential instability in U.S. commercial real estate. In addition, the dollar averaged around 2 % weaker in April than in March, making precious metals more affordable to holders of other currencies. Expectations of a more dovish Fed in light of recent banking turmoil further boosted interest in precious metals, which bear no interest. Moreover, platinum and palladium should have gained additional support from recovering automobile production in key global markets as semiconductor availability improved—platinum and palladium are used in vehicles’ catalytic converters.