The price of gold is rapidly declining against the background of statements of the fed
Last week the price of precious metals dropped as a result of confirmation of the rate of tight monetary policy of the fed. During the November meeting, the regulator has left interest rates unchanged, noting the continued strong growth of the us labor market and household spending, which, according to the fed, keeps the economy on the right course.
Risks to the economic Outlook remain balanced, but investment has slowed down a bit, which may slow down the growth rate. The probability of a rate hike at the December meeting appreciated by the market at 80%. Yesterday, during the speech, the President Federal reserve Bank of San Francisco M. Daly announced that a possible 2-3 more rate hike in the foreseeable future.
The growth of yields has a negative impact on commodity and stock markets together with a sharp strengthening of the US dollar. In the past week have reduced the stocks in the ETF-funds all the precious metals.
According to the report CFTC in gold, platinum and palladium retained the preponderance of short speculative positions in silver is saved to the preponderance of long speculative positions. Last week saw an increase of short positions in gold and silver.
According to GFMS, investment demand for gold in October showed good growth backed by gold ETF funds have shown a growth in reserves by 1.8% compared to September to 2345,6 T.
The largest drop was observed in the Asian ETF-funds, which had declined by 8.4%. Maximum growth showed inventories in the European funds, increased by 1.7%. The reserves in the largest ETF-Fund SPDR® Gold Shares increased by 11.8 tons (1.7 percent), stocks ETF Fund iShares Gold Trust increased by 5 tonnes (2%).
Prices on precious metals in Shanghai on SGE in the past week decreased trading volumes remain average. The Renminbi to U.S. dollar continued to weaken.
Gold demand in China remained weak due to the weakening of the yuan, gold demand in Singapore in the past week increased significantly due to the active shopping of dealers in the period the wedding season in India.
Award for delivery of gold in China last week rose to $4/6 per ounce premium on the supply of gold in Hong Kong has not changed, remaining at the level of $0.7/1.5 per ounce in Singapore premiums rose to $0,6/0,9 oz. Gold in Tokyo was trading at parity with London.
Gold demand in India last week, reducing the discount on gold delivery to $3 per ounce, due to the Diwali festival celebration. In the coming weeks, demand will remain high due to the ongoing wedding season.
According to statistics, production of gold in South Africa in September 2018 fell by 19% in annual terms, after falling 16% in August 2018, the Production of platinum group metals in South Africa in September 2018 rose by 7.2% in annual terms, after falling 6.1% in August 2018.
Gold prices last week were down from the level of $1237 to $1206, unable to overcome the strong resistance level of $1240-1245. Has been broken down strong support level of $1200, and the market dropped to $1199.
The price of silver last week in correlation with the market of gold decreased from $14,73 to $13,98. The ratio of gold to silver is 85,82 points.
The ratio of platinum to silver is of 60.20 points.
Platinum prices in the last period in correlation with the market of gold decreased from $880 to $846. The spread between gold and platinum was $360/ounce. The spread between platinum and palladium was $255/oz.
Palladium prices last week recovered to $1120 under the influence of a correction up in the US stock market, then dropped to $1085.
According to the automobile Association of China, new car sales in the country in October 2018 declined by 11.7% yoy, which could have an adverse effect on the consumption of palladium.
Analyst of commodity markets,