The quarter has been interesting for gold, there has been a change for pattern for it, said Adrian Ash, Director Research, Bullion Vault.
The factors responsible for the spike in crude is Saudi Arabia and Russia are considering a deal to extend the alliance to curb oil production, which could be anywhere between 10-20 years.
Two, hedge funds have turned bullish on outlook for crude prices improving investment sentiment going into FY19 Three, China has launched a yuan denominated crude Futures which has resulted in high volumes and volatility.
With regards to precious metals, the trade war lower interest rates and high inflation concerns due to higher crude prices has given a boost to the price of gold.
While trade war concerns have helped precious metals, it has been negative for consumption of metal. Demand concerns in China and unwinding of long positons on metals have hit industrial metal prices.
To get more insight on metal prices for FY19, CNB-TV18 spoke to Adrian Ash, Director Research, Bullion Vault.
He said the quarter has been interesting for gold, there has been a change for pattern for it. “It is doing what investors want it to do, which is go up when stocks go down, and at the same time defying the move in real interest rates.”Usually, when real interest rates go up, gold goes down, he said.