Gold Glitters in Midst of Heightened Global Uncertainties

Gold Glitters in Midst of Heightened Global Uncertainties

Gold continues to glitter in the midst of global market uncertainties which has been triggered by the COVID-19 virus.

For the week ending April 10, the safe haven commodity continued its surge on the international commodities market.

Fears about when the global economy will recover after the pandemic and low interest rates policies adopted by various central banks has boosted the outlook of the yellow metal, which added US$67.95 to close the week’s trade at US$1,713.65 per ounce.

Brent crude oil, on the other hand, failed to sustain its recovery in the week under review as international disagreement and the reluctance of the US to join in the debate of Russia and Saudi Arabia on whether to cut production by about 10-15 million barrels.

According to the IGS Financial Services Limited, this weighed on the energy commodity which is facing its worse crisis in history.

Brent crude oil thus shed 16 cents to settle at US$33.95 per barrel.

Cocoa also advanced as the global traveling restrictions hindered the availability of the soft crop on the international commodities market.

The IGS Financial Services Limited reported that Ivory Coast which is projected to record higher yields as favourable climatic conditions returns was unlikely to increase supply on the global market due to the fast spreading of the COVID-19.

Cocoa thus gained US$88.00 to trade at US$2,352.00 per metric tonne.

Coffee closed the week’s trade in the gains as lower supplies from Latin America – Brazil and Colombia created demand pressure on the international commodities market.

Poor climatic conditions in both Brazil and Colombia limited the availability of the soft crop on the global market. Coffee thus gained 5 cents to trade at US$1.20 per pound.

Currency market

The Ghana cedi recorded another round of depreciation against all the three major trading currencies.

The US dollar advanced by 0.81 percent to exchange at GH¢5.51. The year-to-date depreciation of the cedi thus dropped to 0.51%.

The British pound also advanced on the international currency market.

The pound recorded a weekly appreciation of 2.60 percent as it traded at GH¢6.87 on the interbank currency market. The year-to-date depreciation of the cedi thus narrowed to 6.58 percent last Friday.

The Euro ended in the positive territory on the international currency market spurred by the persistent push for fiscal stimulus package to mitigate the negative impact of the pandemic.

The Euro posted a weekly appreciation of 2.14 percent to exchange at GH¢6.03 on the interbank currency market. The year-to-date depreciation of the cedi thus reduced to 3.10 percent.