The rate of gold depends on the future policy of the fed
The precious metals markets today are growing up under the influence of a small weakening of the U.S. dollar and rising geopolitical risks after the escalation of the situation in the middle East.
However, the price of gold continues to be highly dependent on the level of interest rates and fed policy, USA. The recent strengthening of the dollar and a sharp rise in interest rates have a negative impact on gold prices, despite the decline in the stock market and rising geopolitical risks.
Stocks in gold and silver ETF-funds has not changed, the reserves of the platinum and palladium ETF funds fell.
According to WGC, the inflow of reserves in gold ETF-funds in April 2018, amounted to 72.2 MT, which was the highest value over the last year. The largest increase in reserves showed the North American and European funds, a slightly smaller influx was observed in the Asian funds. The volume of gold holdings in all ETF funds in the world is 2481 T.
Assessment GFMS, political uncertainty, supporting investment demand in physical gold and ETF funds can provide significant support to gold prices until the end of 2018.
The average annual price of gold in 2018 is expected to reach 1360$, with possible short-term price spikes up to$ 1500 in strengthening macroeconomic and geopolitical risks, the main source of which is the policy of the United States. Analysts expect a recovery in investment flow in ETF-funds of up to 350 tons, as well as resumption of gold purchases by the Bank of China.
Prices on precious metals in Shanghai on SGE in the past period decreased, with the exception of the grown up prices for platinum, trading volumes remain average. The Renminbi to U.S. dollar strengthened.
Assessment of the China Gold Association, in 1Q 2018, the consumption of gold in China dropped by 5.4% over the same period 2017 and was 285 tons, and the production of precious metals increased by 1.9% to of 113.4 t
Gold imports into India in April 2018 fell to 57 tonnes, while demand remained subdued amid a sharp growth of domestic prices due to the weakening of the rupee. According to GFMS, gold imports into the country for 4 months. 2018 has decreased by 34% over the same period 2017 to 220,1 t In may, a slight increase in expected imports.
Gold prices returned to the level of $1318 under the impact of a weaker US dollar and rising geopolitical risks.
The nearest support levels in gold are $1305-1290, resistance levels – $1320-1345.
Silver prices in correlation with the market of gold rose to $16,67.
The ratio of gold to silver is 79,42 points. The ratio of platinum to silver is 55,36 points.
The next support levels in silver – $16,40-16,14, resistance $loss of 16.85-17,0.
The price of platinum in correlation with the growth in the gold market returned to the level of $922. The spread between gold and platinum is $402/oz. The spread between platinum and palladium is $65/ounce.
The next support levels in platinum – $909-895, resistance to $930-940.
Palladium prices in correlation with other precious metals markets recovered to the level of $976. Consumers switching to the use of platinum promotes scrapped a growing trend.
The next support levels in palladium – $962-936, resistance levels – $982-999.
Analyst of commodity markets,