ArmInfo. In Armenia, prices for precious metals slowed down the decline over the week from 4.7% to 2.3%. Moreover, a downtrend is observed for all precious metals, with the exception of gold, the price of which has turned upward from the recession.
As ArmInfo was informed in the State Depository of Precious Metals and Gemstones Agency at the Armenian Ministry of Finance, from March 16 to 22, 2020 the following selling prices for precious metals were established: gram of gold (measured bullion) - 25 621.88 drams (weekly change from 0.3 % decline by 1.3% growth), silver - 261 drams (slowing the weekly decline from 4.9% to 1.3%), platinum - 13 328.06 drams (slowing the weekly decline from 6% to 0 , 9%), and palladium - 35 369.13 drams (acceleration of the weekly decline from 7.5% to 8.5%).
According to international exchanges, March 19, 2020 at 4: 57pm Moscow time the spot price of a troy ounce of gold was $ 1476.4 (daily increase by 0.15%), silver - $ 12.04 (daily increase by 0.25%), platinum - $ 601 (daily increase by 0.17%) and palladium - $ 1702 (daily decline by 0.32%).
According to a Gold.ru report, last week the coronavirus began to spread rapidly in the United States and Europe, which led to another collapse of quotations on world financial markets. The Federal Reserve System (FRS) reduces interest rates to zero, introduces a new asset repurchase program, but it does not seem to have a long-term effect.
Even the world's main defensive asset - gold - suffers from a general sale. The fact is that investors cash out their liquid positions to fulfill exchange margin calls (requirements for adding funds).
As a result, the gold rate for the week fell by -9%, from $ 1,700 to% 1,544 per troy ounce. There has not been such a major drop in a week since 1983. The yellow precious metal was followed by silver (-19%) and a record drop in palladium (-35%). According to experts, investors sold their positions in precious metals not only to cover margin requirements at other sites. In the gold, silver and palladium market, there is also a massive deleverage. Many positions were opened with speculative goals, and now they have to be reduced or closed. The news agency said that the massive sale of positions in gold futures led to the fact that this asset has lost the status of a protective asset. However, despite the shock in the financial markets, the long-term outlook for yellow precious metals remains optimistic. If coronavirus leads to a decline in economic growth in the global economy or to a crisis, then the demand for the main means of saving will return.
