The precious metals market seems to be the only truly stable haven for market participants at the moment. Gold has shown a significant leap up, which allowed it to overcome the strategically important level of $1.750 dollars per troy ounce. It was this mark that kept the precious metal from further progressing to the level of $1.800. Now, when the breakthrough is complete, there are no more obstacles on the way, and the incoming news only supports the metal market in general and gold in particular.
Today, investors turned their close attention to spot gold, since it was able to reach the maximum mark in the last 7.5 years. Recall that the spot price of precious metals on the basis of Friday's trading rose sharply against the background of negative forecasts for the development of the economy of the United States of America. April data turned out to be much lower than experts' forecasts, which indicates global negative processes taking place in the country's economy. Moreover, the growing fears were fueled by the escalation of the conflict between the United States and China over the COVID-19 pandemic, which the latter could not contain. All this inevitably supported gold, which was appreciated.
Spot gold was able to increase its value by 0.7%, and this is $12.56 per troy ounce, which sent it to the level of 1.74302. Previously, it also consolidated at around 1.75213, which has not happened since December 2012.
Gold futures in America for June delivery also rose 0.7% ($ 12.25) to $ 1.75315 per troy ounce. And last Friday the pair even managed to get to the mark of $ 1.76055.
While the world is slowly starting to quarantine, financial markets are trying to grab hold of the last straw to stay afloat. However, all the chances to get out of the current crisis are fraying before our eyes amid incoming statistics on the development of the economy. Market participants, in an attempt to save their capital, begin to turn to gold and other precious metals.
Moreover, the crisis has not yet come into full force, and most experts say that in the near future, we will face a series of bankruptcies of the largest enterprises, not to mention smaller enterprises. The decline in profits, as well as an increase in unemployment, are only gaining momentum.
The possibility of a new wave of coronavirus infection in the second half of this year is also putting pressure on the economy.
All this, of course, could not but affect the quotes of precious metals. Gold was able to say goodbye to the side trend and rushed up sharply. So far, it has been actively influenced by the weakening in the stock market, negative forecasts from the US, but forward, according to analysts, even more, support the metal news. So moving up can become a long-term trend in the precious metals market.
Following gold, better times came for silver. After gold exceeded $ 1.720 per troy ounce, silver also stagnated. The ratio between their value reached 107, which is the lowest over the past few months.
Significant support for precious metals is also provided by news from research agencies in China. According to them, investors working with raw materials began to accumulate assets. Companies at the peak of the wave of "cheap" loans were able to arrange a large number of such loans, which, in turn, were invested in raw materials, since, in their opinion, the increase in prices for precious metals should provide more profit than direct production activities.
This fact also led to a significant strengthening of copper in the market, as well as a decrease in its reserves on the futures exchange in Shanghai. Recall that copper was able to break its maximum value over the past eight weeks at $ 2.43 per pound.
To date, the value of gold has increased by more than 1%, which allowed it to reach its maximum value since 2012. Palladium is also up, its value reflected the maximum value over the past three weeks.
The spot price of gold futures was up 1.17% to hit $ 1,761.40 per troy ounce.
The spot price of palladium pulled up 2.94% and stood at $ 1,956.83 an ounce.
Silver rose by 4.31% and began to cost $17.34 per ounce.
Platinum increased its value by 2.88%, its current mark is at $820.96.
