Analysis Economics Market Overview

Analysis of Futures: Commodity Groupings SWOT


The platinum market made a rebound from the March lows because the investor’s demands for precious metals has overshadowed the influence of poorer demand for platinum-based spurs from the locomotive industry. Platinum is performing well with a 3.45 percent rise irrespective of the shutdown. 

ETFs made an extra gain of 73,044 troy ounces of gold in their holdings in the last session making 19 days inflows in a row. Gold soared to 1,800 USD an ounce in the past weeks, and this was the first time it made such a move since 2011 before it dropped by the end of the week. Gold’s price has made a bumpy so move. However, because of the macro backdrop, we anticipate it will get higher. 

The South African gold index rose as high as 12 percent Tuesday to its record high peak. The gold in rand price soared 1.6 percent and made the highest record since 1971. South African gold manufactures made increases. AngloGold, for instance, made an increase of roughly 6 percent, while the Gold Fields made an increase of 13 percent.

Technical indicators illustrate that platinum may break out into a new rally, following a fresh rise in the pricing of gold. 

The problem of logistics in the gold market is gradually getting better as suppliers resort to chartered flights. Also, these flights are covered by insurance policies. This has assisted to minimize the market disruptions that have resulted in a large spreads difference between the New York and London futures. London gold vault operators agreed to collaborate with each to offer help to anyone going down. 

Analysis of Futures

India’s central bank proclaimed that it’ll issue sovereign gold bonds that will mature within eight years. The government equally planned to issue an option that can exit after 5 years. They plan to sell the bonds through commercial banks, stock exchanges, and post offices. The bonds issue started in April this year.


Silver performed the most poorly last week. The price was down by 1.65 percent. The hedge funds cut their net-long position to a ten-month low and the gold-to-silver ratio exceeded 100-to-1 when a 60-to-1 RATIO is more in line with historic averages. 

Gold saw a decline on Friday after it reacted to the United States announcement of plans to gradually reopen the economy and a similar announcement by many other countries. The London and New York gold futures price difference persisted during the week. The premium for New York futures against the London spot price is as high as 70 USD and this is the largest move in the past 4 decades. 

The total ETF positions and the hypothetical overall longs have to some extent been minimized. We anticipate a risk for additional liquidation of position according to analyst’s reports. If prices make a lower correctional move, it would be a good chance to position for an eventually transformed strength. The significant levels of support are 1,800 USD and 1,650 USD per ounce. 

exchange-traded funds (ETF)

India’s gold Jewelry industry faces an impending liquidity collapse as a result of zero net sales and undesirable cash flows. According to Bloomberg, the retail industry witnessed a complete shutdown as a result of the coronavirus lockdown that resulted in called weddings and postponements of festivities that are normally the drivers for growth in the retail market.

Thailand Prime Minister reported that the citizens are selling their gold ornaments amidst the economic meltdown and at a time when the country reserve of gold is running down. Another reason that is spurring the sale is the spike in the prices of gold.

The U.S. Mint declared its intentions to halt production at the New York West Point facility because of the risk of employees being infected by a coronavirus.


UBS increased is price projection for Gold to 1,800 USD an ounce after the Fed made a pronouncement that it will expand existing credit support techniques. The two key determinants of the prices of gold are real U.S. interest rates and anticipations about the U.S. dollar purchasing power. However, our opinions on these views are negative. Some analysts think that gold will make bullish moves and rally to 1,900 USD per ounce.

Torex Gold Resources gold production was 108,530 ounces in the first quarter, and that was a 39 percent year-year-rise. Yamana Gold declared its intention to resume mining operations Canadian Malartic mine after Quebec permitted mining resumption.


President Trump earlier revealed his intention to gradually open the economy gradually in three stages and started the first batch of reopening in May. Premature reopening potentially resulted in new waves of infections. 

Impala Platinum Holding’s in South Africa faced legal suit for alleged violation of lockdown measures. The company’s executive got released only after payment of 60,000 rand bail charge. 

Poor performing bonds continue to increase in number due to the effect of the coronavirus pandemic.