Gold prices fall, investors looking for income in risk assets
The precious metals markets today, falling under the influence of increased risk appetite, despite a slight weakening of the US dollar. The recovery of activity in the stock markets pulls investors ‘ funds from the precious metals markets. Stocks in ETF funds, precious metals have not changed.
Prices on precious metals in Shanghai on the SGE fell, trading volumes have grown, yuan to the US dollar strengthened. China’s foreign exchange reserves in February 2018 fell to $3,144 trillion – strengthening American protectionism may intensify the outflow of capital from China.
Award for the supply of gold in the domestic market of China last week was $6-8/oz vs $8-9/oz last week. Premiums in Hong Kong and Singapore have not changed, remained at level of $0,7-1,2/oz and $0.8/oz respectively. Award for the supply of gold in Tokyo has remained at $0.5/oz – gold demand in Japan remains high due to the monetary factor.
According to customs statistics, imports of gold into China from Hong Kong in January 2018 increased by 65% by December 2017 and 62% by January 2017 gold Imports to China from Switzerland in January 2018 rose by 63% by December 2017 and doubled by January 2017, amounting to 41.5 tons. The main reason for the growth of gold imports into China was the decline in the stock markets and increased volatility and risks.
Gold imports to India in February 2018 declined by 25% yoy to 63 tons. Gold imports in January 2018 was 41.3 tonnes gold imports in March are estimated at 80 tons.
Discounts on the supply of gold in the domestic market in India was$3/oz compared to$2/oz in the last week. Demand remains low because in March the population pay taxes due to the end of the fiscal year.
Gold prices eased to $1317 under the influence of investors ‘ interest to risky assets. Physical demand in Asia supported prices.
The nearest support levels in gold are $1314-1285, resistance levels – $1343-1365.
Silver prices in correlation with the gold market increased to $16,70, and then fell to $16,48. The ratio of gold to silver is 79,75 points. The ratio of platinum to silver is 58,17 points.
The next support levels in silver – $of 16.39-16,10, resistance levels – $16,70-17,0.
The price of platinum in correlation with the gold market recovered to the level of $968, then dropped to $959. The spread between gold and platinum is $359/oz. The spread between platinum and palladium is $31/oz.
The next support levels in platinum – $950-949, resistance levels – $968-974.
The palladium market has grown to the level of $990, after which the prices dropped to $982.
The next support levels in palladium – $966-939, resistance levels – $9990-10000.
Analyst of commodity markets,