Commodity frenzy: gold in the spotlight. What will the week bring?
Last week, major US stock indices saw a narrow consolidation near all-time highs. However, investors are focusing on the situation in metals, especially precious metals. Gold, silver, and platinum are recording further dynamic growth, driven by the desire to diversify.
Gold in the spotlight
Investors are still unsure what the global situation will look like in the next few quarters. The problem with creating reliable forecasts is... Donald Trump, whose unpredictable policies have not only shaken the situation in the field of international trade, but also undermine the credibility of the Federal ReserveThe Fed's renewed interest rate cuts are merely a side effect, although rising expectations for a return to easing have led to a rise in gold prices.
Gold has experienced a veritable bullish rally in recent weeks. The price of the metal has risen to over $3800 per ounce, with virtually every subsequent session setting new all-time highs. Investors have once again begun buying gold ETFs. This year, the amount of gold in the funds has already increased by over 10 million ounces. Assuming the dynamics of the first nine months of this year continue, we can expect further growth in investment demand, which should support further increases in gold prices.
Perhaps an even more interesting situation is emerging in the platinum market, which has been in a clear deficit for the third year in a row. This is due to a significant decline in industrial demand, but investment and jewelry demand for this metal has been steadily growing for a long time.In the last six years alone, demand for platinum bars in China has increased tenfold. With gold prices soaring, will platinum once again become a focus of investor interest?
- Gold prices hit record highs… and what next?
- What does the latest data show?
- What is the situation like on Wall Street?
About the host
Dr Przemysław Kwiecień - Chief economist X-Trade Brokers. Doctor of Economics at the University of Warsaw, graduate of the University of Warsaw and London Metropolitan University (MSc). Holder of the prestigious CFA certificate. He has been working for XTB since 2007, previously he gained experience as an advisor to the Minister of Finance, Mirosław Gronicki, and an economist at Bank Millennium. At XTB, he manages the Analysis Department.
CFDs are complex instruments and involve a high risk of a quick loss of cash due to leverage. 69-80% of retail investor accounts lose money when trading CFDs with this CFD provider. Consider whether you understand how CFDs work and whether you can afford the high risk of losing your money.