Precious metals found support

By | May 22, 2020
InstaForex
Precious metals found support
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The precious metals market has experienced positive dynamics today against the backdrop of the conflict that is growing between the United States of America and China. Investors were under pressure and decided to turn to a safer sector which is the gold market. However, today’s support, most likely, will not save the precious metal from falling in the weekly indicator. Recall that during the current week, gold was under serious pressure from positive statistics on the growth of key economic indicators, which in turn followed the lifting of quarantine measures related to the COVID-19 pandemic.

This morning, on the trading floors, the price of gold rose by 0.84% and reached the level of $ 1,736.45 per troy ounce. However, yesterday it closed with a loss of 1.4%, which, of course, has not yet been compensated for today. The metal support level was at $ 1,715.30 per troy ounce, and the resistance level was at $ 1,775.80, respectively.

Nevertheless, fundamental indicators continue to provide good support to gold. So, an increase in production activity began to be recorded in the European countries, as well as the US. Yesterday’s PMI data were higher than the previous ones.

The tension between the world’s largest economies, the United States and China, adds fuel to the fire. As the conflict escalates, the price of precious metals will increase, because market participants in such an uncertain situation will want to preserve their assets.

Other precious metals at today’s auction so far showed multidirectional dynamics. Thus, silver futures for July delivery rose in price at Asian trading by 0.63%, which allowed the precious metal to gain a foothold at around 17.473 dollars per troy ounce. This is contrary to what happened in European trading which slowed down by 0.25% and began to cost 17.02 dollars per troy ounce.

Palladium also reduces its value by 1.91% and falls to the mark of 1 975.06 dollars per ounce.

The price of platinum creeps down 0.6%, which pushes it to the level of 827.41 dollars.

Copper futures for July delivery are also negative with value reduced to $ 2,377 per pound, indicating a decrease of 2.26%.

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