Spot precious metals prices were weak during the year, and prices rebounded in April
On April 29, the silver market average price in early trading was 5,442.67 yuan/kg, an increase of 1.59% within the day, compared with the early morning spot market price at the beginning of the month (April 1) average price of 5061 yuan/kg, an increase of 7.54%; compared with the beginning of the year (01.01) silver spot The price was 5550 yuan/kg, a decrease of 1.93%.
On April 29, the spot price of gold was 373.47 yuan/g, an intraday increase of 0.57%, which was an increase of 2.79% from the early spot market price at the beginning of the month (4.1) at an average price of 363.35 yuan/g; compared with the beginning of the year (01.01) gold spot price was 392.70 yuan/ Grams, down 4.90%.
Strong demand for gold consumption in the first quarter, shrinking investment demand
The World Gold Council released a report stating that the global gold demand (excluding over-the-counter transactions) in the first quarter was 815.7 tons, which was basically the same as the fourth quarter of 2020, but dropped by 23% compared with the first quarter of 2020. Although the average gold price in the first quarter rose 13% year-on-year, it fell 4% quarter-on-quarter. The relatively lower gold price than last year has stimulated consumer demand for gold. In particular, many markets have gradually lifted the epidemic blockade, and the economic recovery has begun to provide further support for demand growth. The significant outflow of gold ETFs offset the strong growth in consumer demand. Rising interest rates and falling gold prices inhibited some investors’interest in gold. Global gold ETFs had a net outflow of 177.9 tons in the first quarter.
The price of gold stopped falling in April, and the upward trend began to appear
The previous plunge in gold was mainly due to the recent high yields of US long-term Treasury bonds, the continuous rise of the US stock market, and the upward trend of international commodities, which weakened the enthusiasm of the precious metals speculative market. Recently, the price of precious metal gold has stopped falling and stabilized, and rebounded slightly. On the one hand, due to the booming domestic precious metal consumer market, the price of gold has doubled and the demand for physical consumption has surged. On the other hand, in the long-term, real interest rates remain low, central banks of advanced economies will continue to purchase government debt, industrial demand will increase, and consumer demand for jewelry and gold and silver will also increase. Precious metals have a rebound momentum.
Market outlook forecast
The overseas epidemic, especially the situation in India, has attracted much attention recently; India, as one of the major gold consumers, may be affected to a certain extent. However, based on the fact that the price of precious metals is greatly affected by investment demand, it is expected that precious metals will continue to recover in the near future.
