The price of gold continues to decline despite geopolitical risks
Gold prices fell last week, and today went to the lowest levels since may 3 of this year. Troy ounce of the precious metal is trading at $1276,80 and may retreat to $1269 – 1270 in the case of a new wave of strengthening of the US dollar.
Another attack of the dollar and the interest of global investors for risky assets, despite new details of a trade war between the US and China, caused the price of gold to decline. Now bidders are not afraid of any problem at Huawei, nor a boycott of Apple products, nor the possible consequences for the companies involved in the supply chains of parts or sales. All around I think that the U.S. pressure on Huawei will force China to be more flexible in relation to trade agreements. Hence, such high interest to the risk that a minor effect on the gold. But it’s unlikely that Washington is dealing with a very smart opponent, and aggressive attitude will not help here.
Now, however, the market clearly likes add up in favor of the one who makes noise, presses, attracts attention and is struggling to win the trade the blanket over himself. Why the dollar on top and gold on the outside.
While in the trade war between the US and China will not be something that causes players to be nervous, everything will remain in their places.
There are moments that are worth paying attention to. This parliamentary election in India: passed the first stage, ahead of the second, within which the ruling party BJP under the leadership of Prime Minister Narendra modi can win the majority of seats in Parliament. The BJP got one of the priorities — the growth of incomes of the population, mostly rural. This group of the population in India accounts for about 70% of the total physical demand for gold, and if there will be progress, gold will be supported. In addition, if (and when) trade negotiations the United States and China will end with a favorable outcome, gold may also grow in price, because it will take the fear of a new devaluation of the yuan.
For almost a full month (from April 26 to date), the coin is “George” rose by 9% in rubles to RUB 22953 Increased in price and one of its main competitors — the “Australian Kangaroo”, here the growth is 3.5% in rubles. During the same period “Chinese Panda” has increased in price by 2.4%. Recall, however, that the weight of “George” is much less than an ounce (7.78 grams), while Australian and Chinese coins full (a little more than 31 grams). However, it is clear that the investment attractiveness here is not less noticeable.
“Information-analytical center “Alpari”