Precious metals prices moved higher over the first three months of 2022, with palladium leading the way on the upside. Silver posted the second-leading gain, closely followed by gold, and Platinum moved higher but continued to lag the precious metals sector.Â
Rising inflationary pressures continue to underpin precious metals prices, but it was Russia’s invasion of Ukraine that lit a bullish fuse under the sector in early March. Palladium and gold prices rose to new record highs before correcting.Â
The composite of four precious metals rose 8.73% in Q1 2022.
Gold reaches a marginal new record high
Nearby COMEX gold futures rose to a record high of $2063 per ounce in August 2020. After a correction and consolidation period as the leading precious metal digested the move over $2000, the price moved to a slightly higher high in early March 2022.Â
The monthly chart highlights the rally that took nearby gold futures to over the $2070 level for the first time. Gold corrected from the high and settled at the $1949.20 level at the end of Q1, 6.60% higher for the quarter.
Palladium explodes and corrects
In May 2021, palladium rose to an all-time peak. Russia is the world’s leading palladium producer. In Q1, palladium exploded higher on supply concerns.Â
The chart shows palladium’s rally to over $3380 per ounce in early March. The price corrected to the $2,255.60 level on March 31, but palladium was still 17.96% higher in Q1.Â
Silver moves higher but closes the quarter near the midpoint of the trading range
While gold and palladium moved to new record peaks, silver only rallied to the highest price since June 2021.Â
The monthly chart illustrates that silver rose to over $27 per ounce in early March but remained below the 2021 high. Silver has made lower highs since February 2021, when the price probed over the $30 per ounce level.  COMEX silver futures rose 7.63% in Q1 and settled at $25.133 on March 31, around the midpoint of the first quarter’s trading range.Â
Platinum remains a laggard, failing again at the $1200 level
Platinum teased the market with a rally that took the price to $1197 on the nearby April contract on March 9.Â
The chart shows that NYMEX platinum futures fell below the $1000 level at the end of Q1, posting a slight 2.72% gain over the first three months of 2022 and closing the quarter closer to the low than the high for the period.Â
The prospects for the precious metals in Q2 and beyond
On April 8, the four precious metals that trade on the COMEX and NYMEX futures markets were slightly lower than the prices on March 31. The rising US dollar and prospects for higher interest rates have weighed on the metals.Â
However, the cause of a higher dollar and increased rates is inflation. Inflation is bullish for the metals. The bifurcation of the world’s most powerful countries along ideological lines is even more supportive of the metals as we move forward into Q2 and the rest of this year.Â
Over the past two decades, buying precious metals on price dips and weakness has been optimal. I expect that strategy will remain the best way to participate in the precious metals sector throughout 2022 and beyond.Â
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