Precious Metals Slump Amid Rising US Yields, Natural Gas Prices Soar

The precious metals market experienced significant selling pressure last week, with silver and platinum facing sharp declines. The US dollar and US bond yields rose due to positive US economic data, increasing expectations that the Federal Reserve will maintain high interest rates in the near future. Silver prices fell by more than 3% during the trading session on September 23, to around $64.3 per ounce. The main impetus for the decline came from a series of positive US economic indicators, including the preliminary US composite Purchasing Managers' Index (PMI), which rose to 58.4 in September.

The World Platinum Investment Council forecasts that the platinum market will shift from a deficit to a surplus in 2026, with supply exceeding demand by approximately 265,000 oz. However, despite this shift, platinum prices fell by about 1.7% amid a stronger US dollar and rising US bond yields.

The energy market also experienced a mixed trading week, but natural gas prices surged nearly 6%, driven by tight supply-demand balance. The amount of gas added to storage in the week ending September 18th reached only 53 billion cubic feet (Bcf), significantly lower than the 77 Bcf added during the same period last year.

On the demand side, natural gas demand remains high, with average daily gas supplies to major U.S. LNG plants reaching 17.8 Bcf/day in September, up from 17.2 Bcf/day in August.