In the story of the coronavirus, light seems to have dawned at the end of the tunnel the virus is still not enough, but the economies of the leading States, which are well battered by quarantine, are beginning to come out of self-isolation. The decision not to wait for the final victory at COVID-19 is quite justified, the period of the pandemic has dealt the world economy a powerful blow, with the consequences of which we must somehow cope otherwise we will have to get used to living in a permanent crisis. Although it is already possible to say with confidence that it will not be easy for anyone and one of the main tasks is to minimize losses.
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This leads directly to the conclusion that there is a need for a “safety cushion”, since no one is currently insured against the loss of the main source of income. The expert group of the broker By Trend has prepared a brief analysis of the main trends in the short term.
So, what can we expect in the near future from the main assets. Among the national currencies, the strengthening of the us dollar and the Japanese yen is very likely. The stock market has a steady downward trend. Oil prices are likely to stabilize for some time. The most interesting situation is with metals. The desire to sit out in a “safe haven” can provoke a rally in this market, which will be supported by the negative factors listed above. Gold has already passed the important mark of 1,700 USD per ounce and we can count on a confident upward movement. The movement of gold gives an impulse to silver, which has a good potential to take the level of 16.5 USD, and then 17.5 USD per ounce.
The information of research groups from China that commodity traders accumulate tangible assets turned out to be relevant. Many corporations used the cheap loans they received to invest in raw materials, hoping that the growth of their quotations would bring more profit than production. This, among other things, explains the strengthening of the position of copper. However, in the case of copper, analysts at Bytrend broker advise clients to exercise caution and carefully analyze market conditions, taking into account the supply growth potential.
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