Analysis of Gold Prices and Other Metals

Metals are one of the most looked commodities to trade by the investors and traders. The most famous ones are Gold, Silver, Nickel, Zinc, Aluminium, Copper etc. For understanding the prices of commodities it is very important to follow the fundamental news and predict the future. It is one such segment which is purely reacting to the fundamental news across the world. The commodities entirely are based on this rule. For instance during the time of COVID the prices of Crude Oil went extremely down. 

The reason was there was no stop to the production of it and on the other hand due to lockdown the usage and consumption of the same was minimal. Hence there were instanceof storage space running out to store the same. So the prices were hampered by this basic fundamental event. Hence the commodities are directly related to the fundamental events happening around the world. Another instance can be taken as the war between Russia and Ukraine. Due to the wear situation the markets were failing miserably and the investors took up gold and crude oil as their safest bets. Thus the price changes in them were seen to go above all time highs. 

Prices of Metals and their Changes in Recent Past

Gold

It is the safest asset in the entire metal community and the commodity market too. Let’s analyse the price of the same since the last 1 year. The gold prices were at 51800 during March 2022. The current price of gold is 59310. Thus there is a difference of 14.5% or 7510 in the 1 year span. Hence gold has given a return of 14.5% in the last 1 year. It has rendered a much better return than Nifty50 as the index gave negative returns in the past 1 year time span. The index was valued at 17222 level in March 2022 and today it is trailing at 16945 levels.

There are several reasons which have given gold the upper hand than the stock markets. The first reason was the spike in COVID cases and the people turning to gold for finding a safe investment of their money. The major reason and the biggest push to the gold prices was due to the Russia and Ukraine war. The war situation and the after effects of the same had given a major boost to the gold prices. Even in the recent times when major banks are reporting a failure, the investors are rushing to buy gold which has made it possible to go beyond the 59000 mark. On 20th March, 2023 the prices of gold went above 60000 levels as well. 

Silver

The next followed metal after gold is definitely silver. It is considered to be the most invested metal after gold. The price of silver was 69564 Rs back in March 2020. However the metal has given a 52 week high of 72769 Rs and a 52 week low of 51551 Rs. Hence the volatility in the metal is significant for the past 1 year. It has given a return of 4.5% which is much better than the negative return of the Nifty50 index. On the other hand the index has given a price volatility of 21218 Rs between the 52 week high and 52 week low levels. This amounts to a mighty 30% change if compared with the opening price of 69654 Rs. 

Copper

The 52 week range of copper was 601 Rs as the 52 week low and 841 Rs as the 52 week high. The prices have been extremely volatile based on the multiple events throughout the past 1 year ranging from War between Russia and Ukraine to slowing down of the COVID cases and failure of multiple major banks of the world. The copper price was 771 Rs in March 2020 and its current price is 786 Rs which gives it a return of nearly 2% through the year. On the other hand, based on the volatility, the difference between the 52 week high and low is 240 Rs or 30% when compared with the March 2020 price of 771 Rs.

Nickel

Nickel is a metal that has given negative returns for the past 1 year. The Nickel price was 2425 Rs in March 2020 and the current price of the same is 1967 Rs. This means a return of (- 458 Rs) or – 19% for the past 1 year. The 52 week price range of Nickel is 1780 Rs at the 52 week low and 2625 Rs as the 52 week high. If compared with the opening price of 2425 Rs then the volatility of Nickel is 35% throughout the year. 

Hence the majority of the top metals have given positive returns. However the volatility noticed in them throughout the year between the 52 week highs and lows is extremely high.