The price of gold decreases, the voltage from the trade war leaves the markets

  • And
  • +A

Markets for silver, platinum and palladium today grow, and the price of gold is reduced as a result of some calming of the situation in the economic world, fearing trade wars. Started to receive the first information about the achievement of agreements between several countries in Asia, the EU and the US about the possible continuance of high tariffs on imported metals in America.
On China until there was no agreement, but the degree of uncertainty has decreased. The US stock market shows considerable growth, which affects the price of gold. However, the increase in the number of “hawks” in the government of the United States increases the geopolitical tensions, especially on the eve of talks with North Korea.
Inventories in platinum and palladium ETF funds has declined, stocks in the rest of ETF funds, precious metals have not changed.
Prices on precious metals in Shanghai SGE has not changed, the trading volumes have grown, yuan to the US dollar strengthened.
Gold demand in China remains stable, the premium on gold delivery to the domestic market are $8/oz. Award for the supply of gold in Hong Kong is $1-1,5/ounce in Singapore – $0,6-0,8/ounce in Tokyo is $0.5/oz.
In India gold is trading at a discount of $7/oz to set domestic prices. Gold demand weak, dealers say low retail activity, imports in March may be low. Gold imports in February 2018 amounted to 63 tons.
Gold prices tested the level of $1350 on the background of increasing uncertainty and inflation expectations, and then decreased to $1348. The second quarter is usually weak for precious metals markets due to the low demand for the physical metal, but by the end of the year the price increase to $1400.
The nearest support levels in gold are $1343-1325, resistance levels – $1351-1365.
Silver prices in correlation with the gold market recovered to the level of $16,65, and then slightly decreased. The ratio of gold to silver is 81,33 points. The ratio of platinum to silver is 57.17 points.
The growth in the markets of precious metals (silver, platinum, palladium) with a large share of industrial consumption is restricted because of increased risk of decline in industrial demand.
The next support levels in silver – $16,50-16,20, resistance levels – $16,65-17,0.
The price of platinum in correlation with the gold market once again dropped to the level of $946 and recovered to the level of $960. The spread between gold and platinum widened to $400/ounce. The spread between platinum and palladium is $29,5/oz.
The next support levels in platinum – $946-922, resistance levels at $960-990.
Palladium prices were again under selling pressure and dropped to $970 in correlation with the stock market decline.
The next support levels in palladium – $933-908, resistance levels – $984-991.
Oksana Lukicheva
Analyst of commodity markets,
“Opening Broker”