Gold prices retained a solid anti-risk underpinning even as broader risk appetite perked up on a promising, initial coronavirus vaccine test.
Silver has been beaten handily by gold in the rush to haven assets inspired by the contagion. However, the gold/silver ratio was rising steadily before this crisis and will probably continue to do so.
The crude oil market is slightly torn between fears that the spread of coronavirus will crimp demand for longer than had been thought and suspicions that output will be cut still further.
The New Zealand Dollar was volatile after its home central bank left rates at record lows but expanded its asset purchase program in the face of Covid’s economic hit.
Gold prices got a boost from suspicions that re-opening economies shuttered by coronavirus may not be as linear a process as market optimists might have hoped.
Natural gas prices have traded higher with other growth-correlated assets since early April, despite the clear threat of a deep global recession.
Crude oil prices have risen impressively as investors hope to see the global economy emerge from its Covid lockdown. However, supply levels remain elevated.
Silver and gold are both precious metals but their status as financial assets is markedly different. All the same, the price ratio between them is now extremely high.
The Australian Dollar was well prepared for the RBA’s May rate call which leaves the Official Cash Rate at 0.25%. The central bank acknowledged an ongoing economic threat from coronavirus but point…
Gold prices fell victim to better overall risk appetite as the prospect of a return to economic life gave investors heart. However, uncertainties remain and the market looks well supported.