The price of gold and other metals rose after trade truce

  • And
  • +A

“Truce” in the trade confrontation between the US and China reached at the G20 summit, provided market non-ferrous and precious metals durable base for the price increase. On the one hand, the load factor of the weak dollar: investors now need safe assets as the risk of complications in the relationship between the parties is reduced. On the other – China is the largest consumer of commodities in the world, and the voltage drop in the “trade war” is an absolute positive. This means that China in the next three months will be actively buying oil, gold and base metals.

The price of gold

Troy ounce of gold rose by Tuesday, December 4, to the highs for five weeks and is trading at $1242,10 per Troy ounce. “Sideways” in the range of $1210-$1238, thus, has lost its relevance. According to “Alpari gold” if the momentum will continue in force, protesting the gold rush on October 26 at $1246. When it is successful, the breakthrough will open the way to $1255 per Troy ounce.
This scenario will remain in force until the dollar is not in demand.

The price of silver

Silver now only trying to get the upper boundary of the sideways trading channel of $14,05-$14,71, on Tuesday, the precious metal is trading around $14,55 per Troy ounce. The silver has potential growth rates of 5-7% in the short term, but it will become relevant if the world’s industrial producers confirm the intention to increase the production and require raw materials.

The price of palladium

Palladium began to rise in price even before the announcement of the pause in the trade confrontation between Beijing and Washington. By Tuesday morning, December 4, the metal is trading at $1218 per ounce at yesterday’s high of $1224,56. The spot price for palladium this week updated its historic peaks and is ready to rise additionally. The upward trading channel originates from 12 September this year and is now in force. The purpose of the increase is in the range $1240-$1243.

Copper prices

Copper jumped on Monday to a maximum of 4 October – up to $6301 per ton, but today, Tuesday, December 4, sags up to $6185. It is obvious that the market understands: the pause in the confrontation does not solve the acute problems, it is just a temporary help to the markets. Copper prices remain well below their average annual values, and if China receives signals about its readiness to increase domestic production, the price of metal goes up. The average copper is now undervalued by 10% -15%. This means that in the presence of a driver quotes can return to the area of $6500-$6700.
At the same time, it is clearly seen that without the support of copper will consolidate in a broad range, from $5830-$6326.
____________
Anna Bodrova,
Senior analyst,
Alpari