Precious Metals began 2021 with strong gains as a global surge of Covid cases and the prospects of tougher social restrictions drive investors into safe-haven metals.
The four precious metals that trade on the future exchanges have posted their best annual performance since 2010. Gold and Palladium finished 2020 with 25% in gains, Platinum added 10% while Silver had a stellar year with 50% in gains.
Gold and Palladium hit record highs last year, gaining support from the pandemic outbreak, the expansionary monetary and fiscal policies, and the weaker US dollar.
Institutional investors jumped into bullion to hedge their portfolios against inflation risk and currency devaluation caused by the massive stimulus measures and the lower US real yields.
The US dollar index plunged near 3-year lows, making dollar-denominated precious metals more attractive for investors with foreign currencies.
Finally, Silver, Platinum, and Palladium gained traction by their dual role as safe-haven metals and industrial metals amid the strong economic rebound in China and their extended usage in renewable technologies.