Gold Strikes New Record High
Yesterday, precious metals and other markets around the world, have witnessed a huge rush of liquidity; where precious metals witnessed major demand driving gold to a new record high. However, this time gold did not rebound from its new historical highs, like when it first set those areas, it stabilized above 1035.00 most of the time, thus indicating that the purchasing power which had entered similar metals were merely investments, despite of some speculation.
Gold managed to set yesterday’s high in New York at 1044.80, before closing at 1041.80 rising by 2.42%, recording its highest level in the world history at 1043.78, which included electronic, futures and physical trading.
Meanwhile, silver witnessed as well a strong bullish wave in yesterday's trading, gaining by 4.33% and closing at 17.34; whereas, platinum also closed higher at $1313.00 per ounce advancing by 1.47%. The liquidity that rushed into silver was huge, where embedded with strong speculation, as speculators head towards spot silver trading due to its wide trading range. Meanwhile, platinum came in last with the least gains; its stability remains amid woes surrounding the industrial sector. Despite that signs of growth are starting to appear, they remain sluggish and a recovery is likely to take a longer time.
The positive vibe did not end today; Asian trading witnessed further rise in precious metals, helping platinum make up for its slow gains pacing other metals. Platinum surged by 1.6% to trade at 1334.00 at precisely 2:22 EST, due to rising demand for haven as greenback continues to slump across the board. The optimism that overshadowed the Asian session today was in expectations that Australia’s rate hike was further evidence that the region has started to witness recovery.
Today, gold is trading at 1042.00, precisely at 02:22 EST; whereas, silver is trading at $17.38 per ounce.
Commodities rose in yesterday's trading session; where S&P GSCI recorded gain at 5.68, closing the index at 463.06; whereas crude also ascended to trade today above 71.00, which is what was needed for precious metals. As for the dollar, it witnessed a clear decline in its exchange rate, pushing investors to have more confidence in precious metal investments and inject further liquidity into it, achieving a major hike that had occurred yesterday; where gold managed to record its new historical price through it.
Stock indices managed to surge at the same time precious metals and commodities witnessed a surge in confidence in financial markets. However, at the same we see gold gaining more liquidity from it being in demand as a safe haven against the decline in the dollar's purchasing power, alongside expectations of a major hike in inflation after the global economy recovers. All of this is from the quantitative easing methods, alongside the low interest rates around the world.
We currently do not expect gold and precious metals to halt their gains, but increasing signs are making us believe that precious metals are a good candidate for more hikes, specifically gold, which is expected to gain the most. Yet, we do not rule out the possibility for it to reach the upcoming psychological barriers at 1060.00 then 1100.00, but we must keep in mind that fluctuations for these record levels might be huge with sharp corrections over the short intraday basis.