Due to dollar rally, the precious metals dropped. Before discussing about the drop in precious metals, it is important that you know what dollar rally is. Rally in economics mean the rise of a currency’s (in this case dollar) value compared to other currencies. The rally can last for a long time or it can turn around the next day.
On September 19, 2014, the value of precious metals dropped. Here is the status of precious metals:
- Gold: Gold plunged 1% this week. Gold is used in different industries like medicine, computers, electronics, coins, dentistry and most importantly, jewelleries.
- Platinum: Platinum on the other hand plunged more than 2% this week. Platinum is noted for its physical characteristics as well as its chemical stability which can be used in various industrial applications.
- Palladium: Palladium plunged 3% this week. Palladium is important in the industry because it converts harmful gases into less-harmful ones. It is famous in hydrogen purification and medicine. Palladium is also popular for its contribution in producing heat, water and electricity.
- Silver: Silver suffered the most. Silver plunged 4.5% this week. Like other precious metals, silver is also famous for its broad applications. It can be used as coins, wares, clothing and many more.
It is important that Singaporean investors know this because it can directly affect their trading. If you want to know about trading precious metals, you can ask other people. You can even look for mentors. There are many mentors that you can consider here in Singapore. This is so you can understand things better.