Gold prices on the world market after a week’s break has fallen below level of $2000 per Troy ounce, losing for a day more than 4%. At the same time by 3-7% decrease in prices for other precious metals — silver, palladium, platinum. Interest in protective assets is reduced by the background of rising risk appetite among investors. Including the background of the emergence of new messages on the development of a vaccine against coronavirus.After the rapid growth and achievement at the end of last weeks record high ($2072,49 per Troy ounce) gold prices started correcting. On Tuesday, according to Reuters, quotes of the precious metal on the world market fell to $1939,37 per ounce, the lowest level since July 30. This is 4% below Monday’s closing and 6.4% of the historical maximum.After the rapid growth of prices, which was observed for eight weeks, a correction is overdue, say market participants. In two months the price of gold rose more than 23 percent, updating the historical maximum. According to senior analyst BKS Vitaly Hulk, after overcoming of psychologically important mark of $2000 per ounce, the rate of growth has slowed since the main factors have already been priced in. “Adjusted not only gold prices — a decline can be observed in prices of silver, platinum and palladium,” notes the analyst of “KSP Capital asset Management” Mikhail Bespalov. Their quotes today dropped in price by 3-7%.The decline in prices takes place in the backdrop of rising risk appetite among investors. Today, leading European indexes have grown on 1,3–3%, Asian indices went up 2-2. 5%. “Investors’ optimism continued to support reports of a number of pharmaceutical companies about the imminent introduction of the vaccine, this event will certainly enhance the demand for risky assets. It is possible that the optimism in global markets could partly be dictated by news about registration in Russia, the first vaccine against the coronavirus,” notes managing investment portfolios Friedrich Wilhelm Raiffeisen Vladimir Vedeneyev.As a result, the assets exchange-traded funds (ETFs) for the second consecutive day reduced. According to Bloomberg, the total assets of stock funds, the investment Declaration which is focused on gold, dropped compared with the peak value on Thursday, more than 4 tonnes to the end of trading on Monday 3378 tons.However, with the fall in the value of gold fell and stock quotes of the Russian gold mining companies. During today’s trading on the Moscow stock exchange of the action “the pole Gold” has lost in the price of 5,6%, Petropavlovsk — by 9.3%. “In recent years, shares of gold miners have enjoyed an incredible demand on the background of increasing prices for the precious metal, and now with the drawdown of quotations of securities may be more volatile than gold as a short-terme players fix profit”,— said Mikhail Bespalov.However, analysts believe that it is early to speak about the turn of the months-long growth. “While uncertainty in the markets remains at a fairly high level to talk about the decline of the importance of defensive assets for investors’ portfolios and the broken trend in gold is premature,”— said Mikhail Bespalov. However, as the head of advanced research of the Julius Baer Carsten Menke, “the protective function that provides gold investment portfolio, become very expensive and at the current levels of these metals are more appropriate for short-term traders, not for those seeking asylum”. However, he was “a neutral view on gold and silver”.Vitaly Gaydayev
