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Last week, precious metals in the markets fell due to the decision of the US Federal Reserve to keep interest rates at the same level. However, in connection with recent statements by US President Donald Trump about a possible increase in import duties on Chinese goods, they again gained altitude. The current situation has provided significant support to the gold, silver and platinum markets, experts underline.
Analysts believe the current week is not too active due to the upcoming holiday - Victory Day. Last week, experts recorded a decline in stocks in gold, platinum and palladium ETF funds and an increase in stocks in silver ETF funds. During this period, gold and silver prices also increased in China, on the Shanghai Stock Exchange. The reasons for this experts believe a significant weakening of the yuan against the US dollar and the increase in political and trade risks.
According to the report of the World Gold Council (WGC), in the first quarter of 2019, the excess of the yellow metal in the world was 96.7 tons. During the reporting period, the global consumption of this precious metal grew by 7%. Jewelry gold consumption in the world increased by 0.6% year on year. Total investment demand in the world increased by 3.4% year-over-year, summarized in the WGC.
The official demand for the yellow metal from the leading central banks is actively growing. In the first quarter of 2019, it increased by 68%. During the reporting period, the volume of investments in ETF-funds grew by 48.8% year-over-year. The maximum increase in gold reserves has been recorded in the European funds. In the first quarter of this year, world gold production has increased.
Last week, prices for the yellow metal fell to $ 1,268.8 under the influence of a negative US Federal Reserve decision, but later recovered to $ 1,282.5. According to Reuters, a slowdown in the global economy, instability in stock markets, a pause in rising interest rates and the potential weakness of the US currency will lead to an increase in average annual gold prices to the highest level since 2013. According to analysts, in 2019, the average cost of the yellow metal will be at the level of $ 1,322, and in 2020 - at the level of $ 1,369. Gold prices will be supported by rising purchases of precious metals by global regulators, low interest rates and weak economic prospects.
According to experts, the silver market will still remain under pressure due to declining growth in industrial demand. This year, the average cost of white metal will remain at $ 16.05, and in 2020 - at $ 17. Last week, the price of silver in correlation with the market of the yellow metal fell to the level of $ 14,598, from which the correction went up to the level of $ 14,852. At the moment, the ratio of gold to silver is 86.43 points, and the ratio of platinum to silver is 58.839 points.
The past week was not easy for the platinum market, experts say. The market for this precious metal in correlation with the gold market fell to $ 849.8, after which platinum prices recovered to $ 877. According to analysts, the average annual cost of platinum in 2019 is estimated at $ 865, and in 2020 - at $ 925. According to estimates of the World Platinum Investment Council (WPIC), this year the surplus of this precious metal in the market is expected to be 680 thousand ounces.
Experts from leading analytical company Metals Focus draw attention to the fundamental factors in the market of another popular precious metal - palladium, which demonstrate its deficit of 789 thousand ounces this year. The shortage of palladium will persist over the next few years, experts emphasize. At the same time, a decrease in car sales in key markets, in particular in the USA and China, may lead to a collapse in prices for palladium. Recall that this precious metal is very popular in the automotive industry. Last week, prices in the futures market for palladium fell to the level of $ 1,309.5, and then recovered to $ 1,334. This year, the average cost of this metal will remain at $ 1,350, and in 2020 - at $ 1,275.
Currently, the global market for precious metals is on the rise. Experts predict its further gradual growth.
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