The price of gold increases, the market is aware of the problems in the world economy
The market in December had to renew the local highs, but as investors are increasingly interested in safe assets, moving away from external risks gold and silver are losing their value.
The price of gold
At the beginning of the third week of December Troy ounce of the precious metal is trading at $1241,10 at the peak month at $1256,60. This means that gold is implemented short-term investoday. In the moment gold pressure care market from the risks that develop as a result of the publication of weak statistics from China (retail sales and industrial production) and the Eurozone (PMI Germany and France). The market suspects that the global economy problems, and goes into the dollar.
What can support the price of gold? Oddly enough, the rhetoric of the U.S. Federal reserve at the end of the December meeting. The regulator is now ready to raise the ante, but it may say that then he will need to pause in a series of tightening monetary conditions. According to “Alpari gold”, it will put pressure on the dollar and allow gold due to the correction value to get a plus.
Short-term target in gold is $1245 per Troy ounce, the immediate support is at $1236, under it – at $1225.
After peaking at $14,90 per Troy ounce, silver has been declining for the third day and is now trading at $14,62. It is likely to reach $14.55 in the near future. After that, do not exclude the entrance of silver in the “outset” borders $14,51-$14,83.
Silver still has very little fundamental support. Moreover, there is reason to assume that in 2019 the global industrial production will slow down. This means that industries need precious metals is also reduced.
Silver is not the most progressive investment idea.
The price of platinum
Platinum continues to lose in price. The descending trading channel was formed on 7 November, it is relevant at the moment. Now platinum is trading at $784,60.
The platinum has a powerful fundamental negative – the so-called “diesel scandal” in Europe. In the background the production of automotive catalysts is still too expensive for cars with diesel engines, the market share of diesel cars in Europe this year, is rapidly declining.
In contrast stands the devaluation of the South African Rand. South Africa produces most of the world’s platinum supply, so this factor is very important. In January, the mines in South Africa carry out planned maintenance work leading a production stoppage. This means that at the beginning of 2019 platinum can recover in price. The potential increase is limited to the area of $820 – $850.
What the consumer?
A little liquid silver, platinum is quite expensive, even with the current decline in prices. The consumer can pay attention to the gold investment – particularly for coins. There are no problems with storage, in contrast to bullion, and the retail price looks quite affordable. It is worth remembering that any damage to the coin reduce its value. Perhaps this is the only caveat to consider consumer who wants to invest in gold. Time is on the owner of the gold in the long term a more perfect tool, perhaps not.