Gold, palladium and steel rebar prices jump
Summary
- Gold miners ETFs prices surged in reaction to tensions between Iran and the U.S and central banks pacific turn.
- PALL, the only US-listed ETF backed by physical holdings of the white metal, rise due to stricter emission regulations in the Chinese market.
- Shanghai Steel Rebar Future prices raised slightly inspite of poor weather conditions in China.
Gold miners ETFs
Over the week, GDX soared about 10,32% in a good agreement with the predictions. GDX prices peaked at 23,23 during the 14-day forecast.
Gold has become a lot more sensitive to events around the world. Two events have accelerated gold’s rally during this period. Firstly, the European Central Bank (ECB) unexpectedly turned more dovish than the consensus, as well as the Federal Reserve. Central banks around the world hold gold as part of their foreign exchange reserves, hence, the widening divergence between short-term dollar and euro and yen rates has provided support for the greenback. Finally, Iran shot down an unmanned U.S. drone, creating safe-haven buying.
Palladium
Palladium prices rose by 9,80%, recording a significant augmentation in a good agreement with the forecast. Palladium is a key component used by the car industry in catalytic converters suited to petrol-powered vehicles to diminish harmful greenhouse gas emissions. The demand for palladium remained strong due to implementation of tougher vehicle emission norms in China and a marked shift in consumer preference from diesel to petrol engines―the auto industry consumes more than half of all palladium supply globally, according to IHS Markit.
“More than three-quarters of palladium ends up in catalytic converters for gasoline engines and the rise in the precious metal comes despite a severe slowdown in vehicle sales around the world,” reports Frik Els for Mining.com.
The chart above was sent to I Know first subscribers and illustrates that the price of palladium increased as Chinese regulations became stricter.
Shanghai Steel Rebar
After a decline due to lower demand in the second quarter of June, Shanghai steel rebar futures rebounded slightly. SHFE RB5 peaked at 3834 at the end of the 7-day forecast, reaching a 5,76% growth as predicted by the algorithm.
Rainy season in some places in China and warm weather in other parts of the country last week diminished construction activity, puckering demand for rebar in particular. Still, the current steel demand in China remains stable.
