Today, the price of gold again shows a decline. On the trading floor in New York, futures for precious metals for August delivery became 0.25% cheaper, which pushed them to the mark of $ 1,732.20 per troy ounce. Support for gold was at $ 1,706.20 per troy ounce, while resistance was in the region of $ 1,754.90 per troy ounce.
According to incoming data, the total amount of physical gold in ETFs increased rapidly during the last spring month, which allowed it to break a new record. Moreover, the inflow of capital in these funds was also at record levels, which has never been recorded before. But only five months have passed this year so far, and further growth can still intensify.
According to the World Gold Council, assets in physical gold have increased by a significant figure of 154 tons. Their current level, therefore, moved to the mark of 3510 tons.
All this became evidence that over the past twelve months, assets in funds have doubled. The capital inflow in monetary terms became 33.7 billion more in five months of this year. Recall, that four years ago, gold achieved such significant results. Records broke the general level of the value of the inflow of assets in gold, which totaled to $195 billion.
The bulk of the increase came from funds located in North America. At the same time, in May and in April, assets grew by about 102 tons per month. Assets of funds in Europe rose in volume by 45 tons, while most of them fell to the UK about 65%. Assets in the Asia-Pacific region increased by 4.8 tons.
Four main factors are worth highlighting as the main causes of the events. Firstly, the crisis associated with the COVID-19 pandemic has put serious pressure. Many countries are still in no hurry to open their economies. Secondly, the conflict between the United States of America and China also did not go unnoticed. Despite the fact that investors had other reasons for concern, this also made them save their assets. Thirdly, the high level of unemployment, which is recorded not only in key economic powers (which include, in particular, the USA), but also in almost all countries of the world, makes us recall the times of the Great Depression. The repetition of the situation does not cause any delight. And finally, an active soft stimulating monetary policy of the main regulators of countries, which is traditionally a support factor for the precious metals market. All this, taken together, could well support gold, which ultimately led to the growth of physical assets.
In general, over the current year, the precious metal showed the best dynamics among other commodity assets. The loss index for gold, for example, has so far amounted to only 15%. Oil, on the other hand, already jumped to 40%.
Futures for silver with delivery in July became cheaper today by 0.46%, which moved it to the level of 17.570 dollars per troy ounce.
Futures for copper with delivery in July also declined at around 0.27%, and the level of trade is $2,558 per pound.
