Gold price registers decline after growth in Armenia

ArmInfo. Precious metals prices showed a decline this week, against growth a week earlier. The downward price dynamics was provoked by gold and palladium, which  turned the price vector from growth to decline. So, from June 1 to  June 7, 2020, precious metals in Armenia became cheaper by 0.7%,  against the growth of 6.2% in the previous week.

According to the "Protection of Precious Metals and Gemstones"  information of the RA Ministry of Finance, the agency set the  following selling prices for precious metals for the reporting  period: gram of gold (measured bullion) - 26716.67 drams (change in  weekly dynamics from 0.2% growth to 0, 8% decline), silver - 270.02  drams (slowdown in weekly growth from 8.8% to 1.1%), platinum -  12915.56 drams (slowdown in weekly growth from 7.3% to 0.3%) and  palladium - 30,142.75 drams (change in weekly dynamics from 8.5%  growth to 3.3% decline).

According to international exchanges, June 4, 2020 at 12:03 Moscow  time the spot price of a troy ounce of gold was $ 1,701.7 (daily  increase by 0.02%), silver - $ 17.65 (daily growth by 0.06%),  platinum - $ 823 (no daily changes) and palladium - $ 2010 (daily  growth of 0.1%).

According to the portal Gold.ru, analysts at BMO Investment Bank  Capital Markets note that precious metals will receive support for  growth from Central Banks soft monetary policy. Therefore, the bank  raised its forecast for gold and silver prices.

<What is bad for the world is good for gold>, the bank's review says.  The coronavirus epidemic has led a huge amount of unsecured money to  the global economy to offset the damage from the effects of COVID-  19. The yield on government bonds decreased, and interest rates in  many countries became negative. <In these conditions, we see good  support for the world price of gold, even despite the fragile  geopolitical situation, which directly depends on the situation in  the economy>.

According to analysts, the average price of gold in 2020 will be $  1,732 per ounce. Thus, the bank increased its previous forecast by +  5%. As for silver, the forecast for the current year was increased by  + 2% to $ 17.60 per ounce. The long-term forecast indicates the price  of silver at $ 18.25 an ounce.