“The money was drawn by gold this week, and even made slightly disproportionate gains,” commented Daniel Briesemann, for Commerzbank.
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Gold reached 1,649.26 dollars an ounce on Friday around 3:00 p.m. GMT, a level seen more for seven years, and was preparing to record its sixth session of increase.
The progress of the precious metal comes as “concerns about the coronavirus have re-emerged as the pandemic spread more in Asia,” said Avtar Sandu, analyst for Phillip Futures.
The appearance of new cases of coronavirus contamination in South Korea, Iran, as well as in Chinese hospitals and prisons, rekindles concerns on Friday about the spread of an epidemic which has already killed more than 2,200 people and contaminated more than 75,000 people in China and 1,100 elsewhere in the world.
Since yellow metal is considered to be a safe haven, it tends to appreciate in times of uncertainty.
On the London Bullion Market, the ounce of gold was worth $ 1,644.30 Friday around 3:30 p.m. GMT, against $ 1,584.06 the previous Friday at the close.
“Silver was pulled by gold this week, and even got slightly disproportionate gains,” commented Daniel Briesemann, for Commerzbank, while gray metal rose about 4.5% since Friday’s close. .
Palladium, on the other hand, rose again and peaked at $ 2,849.61 an ounce on Wednesday, a new all-time high. Friday around 3:30 p.m. GMT, it was worth 2,691.46 dollars, against 2,434.65 dollars seven days earlier.
Aluminum stings
Aluminum prices were down this week under the pressure of an expected decline in Chinese demand in 2020 despite encouraging numbers for January.
The International Aluminum Institute released figures on Thursday showing that aluminum production in China had increased in January compared with December and a year earlier, several analysts reported.
The impact of the coronavirus epidemic “is not currently reflected in the figures for aluminum production,” said Briesemann.
“But February could experience a sharp drop due to supply chain disruptions,” said Warren Patterson and Wenyu Yao, ING analysts.
Prospects corroborated by the Chinese government research institute Antaike, quoted by the analyst of Commerzbank, which estimates that the epidemic will well weigh on demand in China, not ruling out a decline for the whole year 2020.
On the London Metal Exchange (LME), the tonne of aluminum for delivery in three months was trading at $ 1,712.00 Friday at 3:35 p.m. GMT, compared to $ 1,722.00 the previous Friday at the close.
Cotton is recovering
The cotton for delivery in May, the most traded today, regained color this week.
The United States Department of Agriculture (USDA) has kept the expected level of Chinese demand unchanged, a positive price signal, said Michaela Helbing-Kuhl of Commerzbank.
In addition, “US shipments to China rose sharply in late January, with 110,000 bales ordered in a single week,” said analysts at Rabobank.
These purchases are notably encouraged by the so-called “phase 1” trade agreement signed by Beijing and Washington in January, despite the coronavirus epidemic in China which is causing concern over demand for all raw materials.
“The price failed to fully recover after the fall that began in late January,” said Ms. Helbing-Kuhl, however.
The pound of cotton for May delivery in New York was worth 69.09 cents on Friday around 3:35 p.m. GMT, compared to 68.41 cents the previous week at the close.
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