Gold is no longer a safe haven: the Outlook for precious metals for February

the Current situation with epidemic of the coronavirus in China, has a negative impact on gold, as investors in this situation as the “safe Harbor” choose not precious metal, and the Swiss franc, the Japanese yen and the US dollar, with which gold has an inverse correlation, said Yevgeny Afanasyev, head of Department of operations with precious metals of the Ural Bank of reconstruction and development.

Thus, in February is expected to consolidate gold in the range: 1540 — $ 1600 per Troy ounce (USD/Oz) with further growth during the year in the direction of 1625 dollars per ounce.

investors ‘ Interest switched to gold only in case of active infection of the coronavirus in the U.S. and Western Europe, since in this case there is a risk of the global economic crisis.

gold Prices

Other significant for gold factors in term of one month will not have a strong impact on the gold price. The factors are:

1. Trade war US — China paused before the November elections in the United States;

2. The fed, it seems, will not go ahead with a reduction in rates, as inflation in the US shows no growth;

3. The conflicts in the middle East, which will not result in a major war, have only local support to the gold price.

Silver in February in the future will trade in a range: 17,20 — 18,40 dollars per Troy ounce, and palladium in the range: 2300 — $ 2500 per Troy ounce.

silver Prices

Silver and palladium largely industrial and not investment metals — the epidemic of coronavirus in China is negative for them, as it can lead to a drop in demand for these metals from such sectors of China as engineering, the manufacture of electronic products and automotive. This is particularly true for palladium, used in catalytic converters of exhaust gases of cars.

the price of palladium.

However, present in the market shortage of supply of palladium might allow him to continue to update a record price even in these conditions.