Last week, prices for major precious metals such as gold, silver, platinum, and palladium showed a significant decline. The reason for this was the strengthening of the US dollar. At the same time, yields on US and European bonds fell, which put pressure on the value of precious metals. They fell, but not for long, analysts say.
Over the past week, the price of yellow metal decreased from $1305 to $1275 per ounce. According to experts, the low demand for physical metal and the neutral position of most regulators have a negative impact on the price of gold. Last week, silver prices held near the level of $14.79 but fell sharply to the level of $14.40 last Thursday. Experts believe that the reason for this was the escalation of the trade conflict between the United States and China.
The complex geopolitical situation in the Middle East, on the contrary, contributes to the growth of gold prices in the region. In China, particularly in Shanghai, prices for major precious metals declined due to a slight drop in demand last week. The rate of the Chinese currency has stabilized, but trade and political risks remain, analysts say.
Experts call the current week a week of Central Banks due to the numerous speeches of the heads of leading regulators and their representatives. Experts believe that the publication of the minutes of their meetings may increase volatility in world markets. Over the past week, the gold reserves in all ETF funds of precious metals have significantly decreased. According to the Commodity Futures Trading Commission (CFTC), last week there was an increase in short positions in gold, while the advantage of short positions is maintained only in this metal.
Many experts believe that the cheapening of the yellow metal is a temporary phenomenon. It is sure to show itself, and the price of gold will go up. However, analysts find it difficult to answer in what period of time this can happen.
