MIL OSI Translation. Region: Germany / Deutschland –
Source: Frankfurt Stock Exchange
Investors are currently focusing on gold and silver. The rally seems to have stopped for now. According to analysts, there is little to be said for a sharper correction. 13. August 2020. FRANKFURT (Frankfurt Stock Exchange). There is currently a lot going on in precious metals: gold’s new all-time high last week, then a sharp setback, and the development of silver prices is also causing a sensation. The price climbed from just under 20 to a peak of 29.41 US dollars in a short period of time – the highest level since the beginning of 2013 and a price doubling since March. Recently it went down again, the price is currently at 25.93 US dollars. Silver ETCs have seen strong inflows in recent weeks, as Mobeen Tahir from WisdomTree reports. “Silver is currently benefiting from the correlation to gold and from the improved outlook for industrial metals.” Investors could position themselves cautiously for an economic recovery in a league with gold ETCs – that’s unusual. The WisdomTree Physical Silver (WKN A0N62F) and the Xtrackers Physical Silver with and without currency hedging (WKN A1E0HS, A1EK0J) were traded lively. But ETCs with leverage also recorded high sales, such as the WisdomTree Silver 2x Daily Leveraged (WKN A0V9Y5) and the WisdomTree Silver 3x Daily Leveraged (WKN A1ZK3W). Hangover after the gold rush? Dollar climbed the troy ounce. The old all-time high from 2011 of just under $ 1,902 was cracked, with a peak of $ 2,069. This was followed by a setback to below 1,900 US dollars for a short time, on Thursday morning the price was 1,930 US dollars.
“Weak dollar supports precious metals” According to Tahir, the rise in gold prices was due on the one hand to the poor GDP figures for the second quarter in Europe and the USA. “Further support for the ‘safe havens’ precious metals comes from the persistently weak US dollar,” explains the analyst. A weak US dollar makes gold purchases cheaper in other currency areas, and concerns about a second corona wave also play a role, as Dora Borbély from DekaBank notes. The bank does not expect any significant price setbacks: “The extremely subdued interest rate outlook, fears of inflation and the crisis, as well as the rising national debt will generally provide support for a long time to come.” For Barbara Lambrecht from Commerzbank, the rally on the gold market was too hot, which favored short-term setbacks. “In the longer term, however, there are good reasons for the high price level.”
Xetra-Gold: And again new highs With gold ETCs, Xetra-Gold (WKN A0S9GB) is once again at the forefront. The stock continues to climb to new highs, currently it is just under 227 tons. In the past four weeks, the Xtrackers Physical Gold with and without currency hedging (WKN A1EK0G, A1E0HR), the WisdomTree Physical Swiss Gold Individual Securities (WKN A1DCTL) and the WisdomTree Physical Gold currency hedging (WKN A0N62G) also showed strong sales in the past four weeks.
Further profit-taking on oil ETCs The oil price is currently going up in small steps. A barrel of North Sea Brent currently costs 45.21 US dollars after 43.46 US dollars a month ago. This was preceded by a sharp rise in prices, up to just under $ 21 at the end of April, and Borbély believes that the latest data shows that the supply cuts by OPEC and its allies, along with the decline in US oil production, were enough to restore equilibrium manufacture on the oil market. “If the equilibrium persists, crude oil should rise moderately in the coming months due to the continued rise in demand.”
WisdomTree reports persistent outflows from oil ETCs. “This is due to tactical investors who invested immediately after the oil price crash in April and are now taking profits.” The rise in industrial metal prices has not continued. The copper price is trending sideways or weaker, and the WisdomTree Copper (WKN A0KRJU) by Anna-Maria Borse13 has developed accordingly. August 2020, © Deutsche Börse AG
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.