“Within the period from April 13 to May 17, 2016, markets of precious metals continued to grow and the spreads between gold and silver as well as gold and platinum narrowed. The highest growth was observed in the rates for CME, palladium, by adding 8.7%; the prices for gold have risen by 2.5%; prices for silver have risen by 5.8% while prices for platinum have risen by 5.1%. As of May 2, 2016 gold and silver markets have reached the maximum values for the last two years at the level of $ 1306 and $ 18.06, respectively, under the influence of a sharp weakening of US dollar. US dollar exchange rate fell below 92 points by index as a result of weak economic statistics and decision of the US Federal Reserve System to leave interest rates unchanged with the mention of possible changes at the June meeting to be held on 14-15 June 2016. After such a significant increase, correction of prices for all the metals downward was observed; currently, the market situation is similar to the consolidation of prices at current levels in the absence of obvious reasons for definite dynamics. In general, the market is in anticipation of the June meeting of the US Federal Reserve System and decision making on the interest rate. The US stock market is also consolidated in the maximum values, while the major players gradually leave the stock assets. For example, it was reported that George Soros has decided to get rid of 37% of the fund portfolio and transfer funds into the gold. The trend is confirmed by the fact that investors in gold ETF-funds continue to buy having increasing reserves by 8.6% in the first quarter of 2016 and by 10.6% in the second quarter of 2016. Negative interest rates and quantitative easing by major central banks of the world have reduced the number of options that are suitable for investments which makes gold attractive in terms of investments. Despite the fact that the US Federal Reserve System is going to continue to raise the interest rates, the general level of interest rates remains very low. In addition, fears of currencies devaluation and growth potential of market volatility also promote interest in insurance assets", - said an analyst at commodity markets "Otkrytie Broker", Oksana Lukicheva.
Source: RBK Quote