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NEWS
PRECIOUS METAL PRICES IN DECEMBER 2024: TRENDS AND INSIGHTS
Reading Time: 3 minutes
December 2024 was an eventful month for precious metal prices, with gold, platinum, and palladium each experiencing unique trends. Whether you’re an investor, manufacturer, or simply curious, understanding these price movements can provide valuable insights into the global economy and industrial demand. In this article, we break down the December price changes and explore the key factors influencing these shifts.
Gold: Stability Amidst Economic Volatility
Gold remained relatively stable in December, opening at £66.97 per gram and closing just slightly lower at £66.93 per gram. This marginal 0.06% decline reflects gold’s role as a safe-haven asset. Despite a strong U.S. dollar and ongoing interest rate hikes, geopolitical uncertainties and inflation concerns supported gold prices. For more information about how gold is used in various industries, contact us.
Platinum: A Steady Downward Trend
Platinum faced a more noticeable decline, starting the month at £24.01 per gram and ending at £23.27 per gram, a drop of approximately 3.1%. This decline was driven by weaker industrial demand, particularly in the automotive sector, where platinum is used in catalytic converters. The ongoing shift towards electric vehicles, which do not require platinum, continues to exert downward pressure on demand. Explore how we manufacture platinum products tailored for various industries.
Palladium: Pressure from Shifting Automotive Demand
Palladium saw a similar downward trend, starting at £24.93 per gram and finishing the month at £23.54 per gram, a 5.6% decrease. Like platinum, palladium is heavily influenced by the automotive industry. As automakers reduce their reliance on palladium in favour of alternative materials, demand has softened. Additionally, increased recycling of automotive catalysts has added to supply, further pressuring prices.
Factors Driving Precious Metal Prices
Several factors influenced precious metal prices in December 2024:
- Economic Data: Strong U.S. employment and GDP growth data supported the dollar, making precious metals more expensive for non-dollar buyers.
- Interest Rates: Rising interest rates in major economies reduced the appeal of non-yielding assets like gold, platinum, and palladium.
- Industrial Demand: Slowing demand in key industries, particularly automotive and electronics, significantly impacted platinum and palladium prices.
Conclusion
December 2024 highlighted the complex interplay of global economic factors on precious metal prices. While gold showcased its stability, platinum and palladium faced challenges tied to shifting industrial demand. Understanding these trends is crucial for informed decision-making, whether you’re investing or sourcing materials for manufacturing.
If you’re interested in exploring high-quality precious metal products, check out our range of custom solutions designed to meet your specific needs.