Gold: Still in demand as a stable anchor currency

Crisis and asset protection continues to receive support from the ultra-loose monetary policy of key central banks and the associated flood of money. The yields on ten-year US government bonds, at 0.6 percent, are only slightly above the record low of 0.569 percent marked on March 9. Low interest rates, which, when adjusted for the inflation rate, currently even show negative real interest rates, are usually particularly popular with gold investors, as it is particularly easy to waive interest rates in such market phases. How uncertain and unpredictable the situation on the financial markets is at present can be seen from the high premium of physical gold. For example, a Krugerrand ounce coin currently shows a premium of around $ 100 over the gold price.

 

Crude oil: quarterly loss of over 60 percent!

The first quarter of 2020 was extremely devastating for the oil price. The US variety WTI has lost 68 percent since the turn of the year, while the North Sea brand Brent has lost over 60 percent. The reasons for this should now be well known. And the chronic oversupply with falling demand should continue to put pressure on the mood. The weekly report of the American Petroleum Institute published on Tuesday evening, which showed a storage increase of 10.5 million barrels, fits into this negative sentiment. The increase in the amount of oil stored more than doubled the analysts’ estimates.