New week the gold market started with a new all-time high of $1945 per Troy ounce. At the same time, the total assets of ETFs investing in precious metal, made up 3.32 tons — also a historic high. In addition to gold by institutional investors actively buying the other precious metals — silver, platinum and palladium. During the period of negative real rates they are protected from global uncertainty due to coronavirus and rising inflation.Monday, July 27, the price of gold has updated the historical maximum established in the beginning of September 2011. According to Reuters, the price of the precious metal on the spot market rose to $1945,16 per Troy ounce. Strong growth in the value of the metal is continued from mid of March. During this time, the price of gold has increased by almost a third, and only in the last six days quotes grew by 7.5%. Increase the price and other precious metals, and more rapidly. In six days the silver rose by 27% to $a 24.57 per ounce (the highest since Aug 2013), platinum — 13%, to $947 per ounce (the highest since late February), palladium — on 15%, to $2329,4 ounce (maximum from the beginning of April). According to Bloomberg, the total assets of stock funds, the investment Declaration which is focused on gold rose at the end of last week, nearly 55 tonnes and made up 3.32 thousand tons, setting yet another historic high. Last week was the 18th in a row, when the funds have increased assets, and during this time they increased by nearly 600 tons. Grow the assets of funds focused on the other precious metals. So, the total assets of silver funds have grown over the past week to 1.24 million tons and for the first time in history exceeded 27 thousand tons. Platinum funds “up” to 2.2 tonnes, reaching a 103.2 tonnes. The weak growth in absolute terms was in open-ended funds, whose assets rose over the week, only 0.7 tonnes (nearly 5%) and reached 14.75 tons.The reasons for the Exodus of international investors into the metals remains the same — large-scale monetary stimulus by major Central banks, the difficult epidemiological and geopolitical situation in the world.”The aggravation of relations between US—China, the announcement of a new stimulus package the EU’s $3 trillion, and the total uncertainty due to the spread of the coronavirus support quotes for precious metals”— the analyst of BCS Global Markets Artyom Baghdasaryan.Quantitative easing and all sorts of monetary incentives could lead to higher inflation, protection against which has traditionally been gold. According to the strategist of Sberbank’s operations in the commodity markets Maria Krasnikova, investors driven by expectations of Federal reserve and press conferencencii its head Jerome Powell. “Quite possibly, he will reaffirm the commitment to easing monetary policy,” said Mrs. Krasnikova.”Pushes” investors in gold and other metals the decrease in the real yield of US Treasury bonds and other reliable sovereign bonds. “In such circumstances, investment demand is transferred to protective assets that can give positive returns,” notes Maria Krasnikova.First, international investors are buying gold and silver, and then less liquid platinum and palladium. “In these metals the features, but in a historical perspective they are, of course, their price correlates with the price of gold,”— said the asset Manager of UK “Opening” Dmitry kosmodemyansky.And in the current environment the interest in precious metals will remain high. The situation with platinum and palladium looks less optimistic. “The share of industrial demand for these metals is much higher. Metals used in automotive catalysts, and given the weak prospects for this market, we did not have high hopes for these assets in the short-term horizon,”— said the asset Manager of the criminal code “System Capital” Konstantin Asaturov.Vitaly Gaydayev
