Russia Leaves U.S. Dollar, Adds Gold

APMEX

7/27/2018 1:17:49 PM

Daily Gold & Silver Market Report – 07/27/2018

According to the Russian Central Bank, reserves of the U.S. dollar have shrunk considerably this year, from $96.1 billion in March to just $14.9 billion in May. According to information published by Nasdaq, Central Bank of Russia Governor Elvira Nabiullina said this move was made in an effort to diversify assets and protect the Russian economy. The report noted the bank has acquired Gold reserves on a monthly basis going as far back as 2015 and is now the fifth-largest sovereign holder of Gold in the world.

The United States is the world’s largest owner of Gold, with Germany just behind. The liquidation by Russia of U.S. Treasury holdings has not had a significant impact on the dollar. In June, Russia purchased 500,000 ounces of Gold, bringing their total 2018 acquisitions to 106 tons. Last year, new Gold reserves for the country totaled 224 tons.

Analysts Predict Slow Recovery for Platinum Prices

The price of Platinum is nearing a 10-year low, but analysts predict prices should soon start a slow recovery. Platinum has had a challenging year on ample supply, weak interest from investors and bearish hedge funds. According to Bloomberg, as many speculators point toward more declines, these bearish wagers could mean prices will be poised for a rebound, according to ING Bank NV. “I take the [U.S. Commodity Futures Trading Commission] data as a fairly bullish reading, as you can see it’s driven by a surge in shorts,” Oliver Nugent, a strategist at ING in Amsterdam, said. “Shorts are at extremes, and there’s likely to be a bounce.” A much-used component in catalytic converters of fuel-cell automobiles, global concerns about lowering demands for diesel have been Platinum’s biggest challenge this year.

Bitcoin Prices See Correction

On Thursday, Bitcoin prices dropped, which many are calling a correction to significant moves that have taken place this week. Bitcoin prices pushed below the $8,000 mark, but some analysts feel higher prices should come sooner than later. In a forecast published on Yahoo! Finance, investors and traders may still be eyeing an opportunity with Bitcoin, which would make any substantial declines difficult. Several cryptocurrencies, including Bitcoin, have seen gains in recent weeks, after several months of decline.

At 11:05 a.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,226.90 Down $1.60
• Silver, $15.60 Up $0.04
• Platinum, $833.60 Down $4.10
• Palladium, $932.70 Down $8.90

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