The price of gold is ready to go higher after the results of fed meeting
Last week the price of precious metals grew in anticipation of the outcome of the U.S. Federal reserve meeting, as investors hope for easing of the monetary policy regulator and the slowdown in the rise in interest rates in 2019, the U.S. dollar strengthened, which has a negative effect on the value of precious metals.
However, the US stock market remains under pressure sales support investor interest in insurance assets.
On Tuesday, December 18, will start the December fed policy meeting, which is expected to increase interest rates by 0.25%. Wednesday will be known the outcome of the meeting and will be announced economic estimates and projections. Of the market, in 2019, the regulator may raise rates twice more, but to offset the increase in the second half of the year.
During the last ECB meeting was officially completed the program of quantitative easing, although Draghi has promised to keep stimulating the economy against the backdrop of its slowing down. Interest rates will remain at current levels until the end of the summer 2019 and the reinvestment of proceeds from the repayment of expiring bonds will continue.
Last week stocks in ETF funds, precious metals declined, the exception was grown reserves in gold ETF-funds.
The COTR report, in gold and silver last week there was an increase in positions, while investors are leaving the markets of platinum and palladium.
According to the CFTC report, gold and palladium there are more short positions in gold, their number decreased, and in palladium grows. In platinum, an increase in the number of long positions.
The price of gold and silver in Shanghai for SGE last week has dropped, and platinum have grown, the Renminbi to US dollar remained stable. Trade negotiations between the US and China started to show some signs of agreement that the hope for the improvement of the economic situation in the world.
The demand for gold in Asia last week were very weak in connection with the expectation of price correction. Award for delivery of gold in China last week dropped to $5/6,5 ounce, premiums for gold delivery in Singapore and Hong Kong amounted to $0,5/0,6 per ounce and $0,6/1,5 per ounce, respectively. Gold in Tokyo was trading at parity with London.
Indian demand last week fell sharply due to the occurrence of December 16, unfavorable period of Khar Mass, which does not make any significant purchases. Khar Mass period will run until 14 January 2019 Discounts for the supply of gold has widened to $4 per ounce.
According to GFMS, demand for gold in India for 9 months. 2018 fell by 8% over the same period, 2017 Jewelry demand has decreased over this period by 12%, while investment demand increased by 11%.
According to the IMF, in November, the Bank of India bought 5.6 tonnes of gold, increasing the gold reserve of the country to 592,06 T. Bank of Kazakhstan for November increased gold reserves by 4.27 tons to 345,45 t, and Bank of Turkey bought 18,12 tons of gold, bringing the gold reserves to 489,57 T.
Last week gold prices fell to $1237,2, after which the market overcame the strong resistance of $1250 in anticipation of the monetary easing policy of the fed. The fall of the S&P index below the level of 2,600 points supports interest in insurance assets.
Silver prices in correlation with the market of gold decreased to $14,572, after which grew to $14,73. The ratio of gold to silver is 85,11 points. The ratio of platinum to silver is 53,988 points.
Platinum prices in the last period I was trying to recover to the level of $808, but sales once again pushed the market towards $793. The spread between gold and platinum is $452/oz. The spread between platinum and palladium is $465/oz.
According to statistics South Africa, gold production in October 2018 fell by 15.1% in annual terms in September fell by 19.7%. Production of platinum group metals in October 2018 rose by 21.4% yoy against a growth of 7.9% in September.
Volatility in the palladium market in the past period remained high. Prices ranged from $1158 to $1193 under the influence of dynamics on the US stock market. Investors doubt the continuation of the growing trend and increasing short positions.
Analyst of commodity markets,