Within the next few days, I intend to analyse Trump’s new plan to cause further turmoil in the Middle East. But today, let’s see the outcomes of China coronavirus outbreak.
Indeed, China Wuhan coronavirus updates continue to disrupt global markets. Just recently, oil prices fell below 60 dollar per barrel, which is very close to the support level of the last two years. If oil price fails to remain at this level, it would quite likely hit back to $50 a barrel. If this fall weren’t caused by a biological hazard, it would mean good news in terms of reducing our current account deficit.
Also remember that $47 a barrel was the lowest level oil price has touched within the last 5 years. If there weren’t any outbreak now, Oil would continue to be traded on higher plateau when compared to the last three years. For now, everything seems to be normal in terms of price formation.
“More precious than gold… Palladium is soaring on global commodities markets…”
Gold price is about to hit its former level during the US-Iran crisis. As experts note that gold sales have fallen below 30%, a number of international institutions are indicating that a new rally is about to start. The fact that the IMF lowered global growth forecast for 2020 before the China virus outbreak was the main reason behind the recent rise in Gold Prices. The way things are going, it may soon exceed 1600 US dollars per ounce.
When we look at the precious metals, we can see that the price of Silver too has been rapidly increasing just like Gold while Platinum remains almost unchanged. But Palladium has been soaring on global commodities market since the beginning of 2016 when it had stood around 500 US dollars per ounce, but today it’s worth 2334 US dollars per ounce. An enormous amount of profit indeed… The fact that the palladium is the preferred metal in the exhaust systems of hybrid vehicles makes it more precious even than Gold today. Palladium is also used in as a precious metal in jewellery, some dental fillings and crowns; luxury watch-making, blood sugar test strips, aircraft spark plugs, surgical instruments, and electrical contacts. Primarily found in South Africa, Canada and the U.S., silvery-white metal was discovered in the early 19th century. Since then, it has been frequently used in various industries.
In short, while we try to keep close track of gold prices, other precious metals are soaring on commodities market. That’s why, I think, it may be useful to take a broader perspective on things from time to time.